The relationship between highway infrastructure and regional economic development
Abstract
This research investigated the relationship between highways and economic development, using data for Indiana from 1980 to 1988. An extensive literature review was undertaken to assess analogous research and results, to identify methodologies that were used, and to review similar studies in other states. An investigation of the extent of highway infrastructure and expenditures, and economic development was done to compare Indiana to other states in the region. Indiana's local economy was also examined at the county level and in different economic sectors. Multiple regression analysis was used to investigate quantitatively the relationship between highways and economic growth from 1980 to 1988. A series of seven highway variables in the broad categories of pavement condition, highway facility extent, and highway expenditures were used together with several other variables that were hypothesized to affect economic growth. Trends were investigated for the manufacturing, service and total industry sectors in Indiana. A total of 43 industry groups were also examined, as well as four different classifications of counties in the state. Forecasting models were developed to estimate the overall impact that highway expansion and improvement will have on the economic growth within a county. Results indicated that highway mileage density was significantly related to economic development, and evidence was found that multi-lane highways had an especially high association with economic growth. The economic impacts of the construction of corridors that were constructed in Indiana between 1950 and 1980 were analyzed using descriptive statistics to determine how employment levels in the region of such a project were affected over the construction period and beyond. Results indicated that the region through which a highway was built experienced higher economic growth than the rest of the state, although this difference was not statistically significant in most cases. Finally, an analysis of industrial location determinants was done, using nation-wide data for manufacturing industries from the early 1970s. Chi-square tests for contingency tables were utilized. Contract trucking availability and highway access were found to be some of the most important determinants of industry location in a region.
Degree
Ph.D.
Advisors
Sinha, Purdue University.
Subject Area
Civil engineering|Urban planning|Area planning & development
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