Abstract
The provision of infrastructure is an important policy tool for promoting regional growth and reducing regional disparities. The main reason underlying this approach is the view that transportation promotes mobility, mobility promotes trade, and trade promotes economic growth. Based on this view, Turkey has invested in transportation infrastructure to reduce the regional economic inequalities since the 1960s. Between 2004 and 2014, governments have expended approximately 65 billion dollars for road infrastructure only. We believe that investigating the recent improvements in road infrastructure with a spatial perspective in an emerging economy as Turkey is necessary to generate more effective and practical regional policies. This study attempts to measure the latest developments of transportation infrastructure by analyzing the spatial effects of road transport infrastructure on regional economy in Turkish NUTS 2 regions between 2004 and 2014. We employ an augmented Cobb–Douglas production function model and use spatial Durbin model to estimate spatial effects. Apart from previous studies that employ spatial econometric models, we create a different spatial weight matrix for each year based on inverse distance to capture the change between the years 2004 and 2014. The results reveal that road infrastructure investment has significant and positive spatial spillover effects on regional growth. Any improvement in road transport infrastructure in a region causes a GDP increase in neighboring regions. Essentially the findings expose the importance of indirect effects of road transport infrastructure and contradict with previous non-spatial and overestimated effect results in the literature.
Similar content being viewed by others
References
Vickerman, R. (2002). The role of infrastructure for expansion and integration. In M. M. Fischer (Ed.), G Atalik. Berlin, Heidelberg: Regional Development Reconsidered. Advances in Spatial Science. Springer.
Button, K. (2005). The economics of cost recovery in transport: introduction. Journal of Transport Economics and Policy, 39(3), 241–257.
Karadağ, M., Deliktaş, E., & Önder, A. Ö. (2004). The effects of public infrastructure on private sector performances in the Turkish regional manufacturing industries. European Planning Studies, 12(8), 1145–1156.
Ministry of Development (2015). Bölgesel Gelişme Ulusal Stratejisi (2014-2023). Ankara.
Aschauer, D. A. (1989). Is public expenditure productive? Journal of Monetary Economics, 23(2), 177–200.
Rodríguez-Pose, A., Psycharis, Y., & Tselios, V. (2012). Public investment and regional growth and convergence: Evidence from Greece. Papers in Regional Science, 91(3), 543–568.
Pereira, A. M., & Andraz, J. M. (2013). On the economic effects of public infrastructure investment: A survey of the international evidence. Journal of Economic Development, 38(4), 1–37.
Moreno, R., & López-Bazo, E. (2007). Returns to local and transport infrastructure under regional spillovers. International Regional Science Review, 30(1), 47–71.
Holtz-Eakin, D., & Schwartz, A. E. (1995). Spatial productivity spillovers from public infrastructure: evidence from state highways. International Tax and Public Finance, 2(3), 459–468.
Boarnet, M. G. (1998). Spillovers and the locational effects of public infrastructure. Journal of Regional Science, 38(3), 381–400.
Cohen, J. P. (2010). The broader effects of transportation infrastructure: Spatial econometrics and productivity approaches. Transportation Research Part E: Logistics and Transportation Review, 46(3), 317–326.
Jiwattanakulpaisarn, P., Noland, R. B., & Graham, D. J. (2011). Highway infrastructure and private output: evidence from static and dynamic production function models. Transportmetrica, 7(5), 347–367.
Del Bo, C. F., & Florio, M. (2012). Infrastructure and growth in a spatial framework: evidence from the EU regions. European Planning Studies, 20(8), 1393–1414.
Xueliang, Z. (2013). Has transport infrastructure promoted regional economic growth? with an analysis of the spatial spillover effects of transport infrastructure. Social Sciences in China, 34(2), 24–47.
Arbués, P., Banos, J. F., & Mayor, M. (2015). The spatial productivity of transportation infrastructure. Transportation Research Part A: Policy and Practice, 75, 166–177.
Dehghan Shabani, Z., & Safaie, S. (2018). Do transport infrastructure spillovers matter for economic growth? Evidence on road and railway transport infrastructure in Iranian provinces. Regional Science Policy & Practice, 10(1), 49–63.
Elburz, Z., Nijkamp, P., & Pels, E. (2017). Public infrastructure and regional growth: evidence from Turkey. European Journal of Transport & Infrastructure Research, 17(4), 1–8.
Yu, N., De Jong, M., Storm, S., & Mi, J. (2013). Spatial spillover effects of transport infrastructure: evidence from Chinese regions. Journal of Transport Geography, 28, 56–66.
Tong, T., Yu, T. H. E., Cho, S. H., Jensen, K., & Ugarte, D. D. L. T. (2013). Evaluating the spatial spillover effects of transportation infrastructure on agricultural output across the United States. Journal of Transport Geography, 30, 47–55.
Chen, Z., & Haynes, K. E. (2015). Public surface transportation and regional output: A spatial panel approach. Papers in Regional Science, 94(4), 727–751.
Li, J., Wen, J., & Jiang, B. (2017). Spatial spillover effects of transport infrastructure in Chinese new silk road economic belt. International Journal of e-Navigation and Maritime Economy, 6, 1–8.
Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3–42.
Halleck Vega, S., & Elhorst, J. P. (2012). On spatial econometric models, spillover effects, and W. University of Groningen, Working paper.
LeSage, J. P. (2014). What regional scientists need to know about spatial econometrics. The Review of Regional Studies, 44(1), 13–32.
Lacombe, D. J., & McLntyre, S. G. (2016). Local and global spatial effects in hierarchical models. Applied Economics Letters, 23(16), 1168–1172.
Elhorst, J. P. (2012). Spatial panel data models. Berlin, Heidelberg: Springer.
Bavaud, F. (1998). Models for spatial weights: a systematic look. Geographical Analysis, 30(2), 153–171.
Anselin, L. (2001). Spatial Econometrics. In B. H. Baltagi (Ed.), A companion to theoretical econometrics, (310-330). Malden: Blackwell Publishing.
Anselin, L. (1988). Spatial econometrics: Methods and models. Dordrecht: Kluwer.
LeSage, J. P., & Pace, R. K. (2009). Introduction to Spatial Econometrics. FL: CRC Press Boca Raton.
Anselin, L. (1999). Spatial Econometrics, Retrieved February 10, 2018, from https://pdfs.semanticscholar.org/47be/74ada1f72cb5fd50e45ba4e448afc74c7cf8.pdf.
Environmental Systems Research Institute (2018). OD cost matrix analysis. Retrieved February 01, 2018, from http://desktop.arcgis.com/en/arcmap/latest/extensions/network-analyst/od-cost-matrix.htm.
LeSage, J. P. (2004). Lecture 1: Maximum likelihood estimation of spatial regression models, Retrieved February 10, 2018, from http://www4.fe.uc.pt/spatial/doc/lecture1.pdf.
Moody, C. E. (1974). The measurement of capital services by electrical energy. Oxford Bulletin of Economics and Statistics, 36(1), 45–52.
Bröcker, J., & Rietveld, P. (2009). Infrastructure and regional development. In R. Capello & P. Nijkamp (Eds.), Handbook of Regional Growth and Development Theories, (152-181). Massachusetts: Edward Elgar Publishing.
Vickerman, R. (2007). Recent evolution of research into the wider economic benefits of transport infrastructure investments. OECD Discussion Paper, 2007-9.
Melo, P. C., Graham, D. J., & Brage-Ardao, R. (2013). The productivity of transport infrastructure investment: A meta-analysis of empirical evidence. Regional Science and Urban Economics, 43, 695–706.
Deng, T. (2013). Impacts of transport infrastructure on productivity and economic growth: Recent advances and research challenges. Transport Reviews, 33(6), 686–699.
Gómez-Antonio, M., & Garijo, A. A. (2012). Evaluating the effect of public investment on productivity growth using an urban economics approach for the Spanish provinces. International Regional Science Review, 35(4), 389–423.
Bronzini, R., & Piselli, P. (2009). Determinants of long-run regional productivity with geographical spillovers: the role of R&D, human capital and public infrastructure. Regional Science and Urban Economics, 39(2), 187–199.
Nijkamp, P. (1986). Infrastructure and regional development: a multidimensional analysis. Empirical Economics, 11(1), 1–21.
Puga, D. (2002). European regional policies in light of recent location theories. Journal of Economic Geography, 2(4), 373–406.
Gezici, F., & Hewings, G. J. (2004). Regional convergence and the economic performance of peripheral areas in Turkey. Review of Urban & Regional Development Studies, 16(2), 113–132.
Filiztekin, A., & Çelik, M. A. (2010). Regional income inequality in Turkey. Megaron, 5(3), 116–127.
Funding
This work was supported by the Dokuz Eylul University Department of Scientific Research Projects under Grant 2018.KB.FEN.005
Author information
Authors and Affiliations
Contributions
Zeynep Elburz: Literature Search/Review, Analyzing, Manuscript Writing, Content planning. K. Mert Cubukcu: Literature Search/Review, Analyzing, Manuscript Writing, Content planning
Corresponding author
Ethics declarations
Conflict of interest
On behalf of all authors, the corresponding author states that there is no conflict of interest.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Elburz, Z., Cubukcu, K.M. Spatial effects of transport infrastructure on regional growth: the case of Turkey. Spat. Inf. Res. 29, 19–30 (2021). https://doi.org/10.1007/s41324-020-00332-y
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s41324-020-00332-y