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Transportation and Urban Development: Urban Growth and Spillover Effect of Transportation Infrastructure Investment
Abstract
It is noteworthy that there is a substantial literature review that examines the impact of transportation infrastructure on urban and regional economic performance. It is observed that such infrastructure investments are focused on the economic growth as well as the spillover effect in applied studies carried out in this respect. In this study, in which the effects of highway transportation infrastructure on urban output and the spillover effect of these investments are determined using the spatial econometric method, 81 cities in Turkey have been taken into consideration, and according to the results of the study, transportation infrastructure investments in Turkey have been found to contribute positively to urban output. Also, while the Moran's I test statistic reveals the spatial dependence of such investments, the Lagrange multiplier test results also determine the need to use the spatial error model. The spatial error model results reveal the existence of the positive spillover effect of transportation infrastructure investments.
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