Differential Economic Benefits of Transportation Infrastructure at the Two Transport Nodes
11 Pages Posted: 15 Dec 2010
Date Written: December 14, 2010
Transportation infrastructure, such as a link bridge, can improve greatly in factor mobility between the two nodes, and is therefore commonly thought to have a positive economic effect at both ends. However, as the convenience of transportation would affect the choice of household and company locations, people and companies may move from the originally more convenient location to the now equally convenient location due to the completion of the infrastructure. It is theoretically and empirically confirmed that a bridge would produce a differential economic benefits (a flatter price gradient) at the two nodes, although they may both be positive. This paper shows an empirical evidence of the differential economic benefits of a bridge in Hong Kong. It sheds new light on cost-and-benefit analysis of transportation infrastructure, such as the cross-border Hong Kong-Macau-Zhuhai link bridge.
Keywords: Infrastructure, economic benefits, urban economics
JEL Classification: R49
Suggested Citation: Suggested Citation