Transport Infrastructure and Regional Development: A Survey of Literature on Wider Economic and Spatial Impacts

Abstract

The main purpose of the paper is to provide an overview of methods used to research the relationship between transport infrastructure investments and regional development, with a focus on wider impacts both in the traditional economic context (wider economic impacts or WEIs) and—which is a methodological novelty proposed by this paper—in the spatial context (wider spatial impacts or WSIs). In terms of methodology, research may be conducted using the following methods: cost benefit analysis (CBA) and multi-criteria analysis (MCA), accessibility and potential models, econometric production function estimates, regional modelling, trade and input-output (IO) modelling, Land Use-Transport Interaction (LUTI) or spatial computable general equilibrium (SCGE) models. In the European Union, approaches based on cost-benefit analysis (CBA), or possibly multi-criteria analysis (MCA), continue to prevail. Notwithstanding the availability of a wide range of methods for quantifying socio-economic impacts, the European Union recommends that wider economic impacts at the regional and national levels be assessed by means of qualitative approaches. This being the case, it is recommendable for the European Commission to take broad-ranging action towards ensuring that the effects of transport infrastructure investments are assessed by means of a broader range of approaches.