Listing 1 - 2 of 2 |
Sort by
|
Choose an application
In many countries, place specific investments in infrastructure are viewed as integral components of territorial development policies. But are these policies fighting market forces of concentration? Or are they adding net value to the national economy by tapping underexploited resources? This paper contributes to the debate on the spatial allocation of infrastructure investments by examining where these investments will generate the highest economic returns "spatial efficiency", and identifying whether there re tradeoffs when infrastructure coverage is made more equitable across regions "spatial equity". The empirical analysis focuses on Uganda and is based on estimating models of firm location choice, drawing on insights from the new economic geography literature. The main findings show that establishments in the manufacturing industry gain from being in areas that offer a diverse mix of economic activities. In addition, availability of power supply, transport links connecting districts to markets, and the supply of skilled workers attract manufacturing activities. Combining all these factors gives a distinct advantage to existing agglomerations along leading areas around Kampala and Jinja. Infrastructure investments in these areas are likely to produce the highest returns compared with investments elsewhere. Public infrastructure investments in other locations are likely to attract fewer private investors, and will pose a spatial efficiencyequity tradeoff. To better integrate lagging regions with the national economy, lessons from the WDR2009 "Reshaping Economic Geography" calling for investments in health and education in lagging areas are likely to be more beneficial.
Accessibility --- Agglomeration economies --- Congestion --- Congestion costs --- Equity implications --- Infrastructure --- Infrastructure development --- Infrastructure policies --- Investments --- Mobility --- Policies --- Road --- Roads --- Transport --- Transport corridors --- Transport costs --- Transport Economics, Policy and Planning --- Transport improvements --- Transport infrastructure --- Travel --- Travel times
Choose an application
This paper develops a dynamic model that explains the pattern of population and production allocation in an economy with an urban location and a rural one. Agglomeration economies make urban dwellers benefit from a larger population living in the city and urban firms become more productive when they operate in locations with a larger labor force. However, congestion costs associated with a too large population size limit the process of urban-rural transformation. Firms in the urban location also benefit from a public good that enhances their productivity. The model predicts that in the competitive equilibrium the urban location is inefficiently small because households fail to internalize the agglomeration economies and the positive effect of public goods in urban production.
Agglomeration Economies --- Communities & Human Settlements --- Congestion Costs --- Economic Theory & Research --- Health, Nutrition and Population --- Labor Policies --- Macroeconomics and Economic Growth --- National Urban Development Policies & Strategies --- Population Policies --- Public Goods --- Rural-Urban Transformation --- Social Protections and Labor --- Urban Development --- Urban Housing and Land Settlements
Listing 1 - 2 of 2 |
Sort by
|