ABSTRACT
In the current era of government budget cutting, austerity programs and deficit reductions, any large expenditure on transport infrastructure will be scrutinized more than ever before for cost-effectiveness and its likelihood of achieving the desired results. This chapter attempts to critically review the literature on the effect of transportation infrastructure on regional development. New transportation infrastructure is not, by itself, a driving force for regional development, but rather, it can induce it when used in conjunction with complementary private investment and other public initiatives and policies designed to raise the region’s relative competitive advantage. The outcomes of transportation investments on the regional economy manifest themselves through observable and measurable changes in the relative accessibility of the region affected. The efficiency of capital investment is greatest during a period of sustainable growth and development. The economic impacts of transportation investment may be positive in some areas and negative in others.
