ABSTRACT

Distance and density remain the two most fundamental concepts in urban development theory. But of course today's cities and regions are vastly different from the places we used to live in as little as fifty years ago and consequently the relationship between transport infrastructures and economic development has been dramatically redefined over the last half century. State-of-the-art regional development theory, including most research funded by the European Union itself, now offers a much more careful assessment of the economic benefits of transport investments than it did ten years ago. The first discusses general theories on the economic aspects of transport investments and then traces the disputes over the TENs and over European regional development policy as a whole. Traditionally, the reduction of travel costs has been the most important factor by which economists calculated the economic benefits of road improvements. In some cases, poor accessibility may actually benefit and protect businesses in weaker regions.