ABSTRACT
The fundamental rationale of economic growth from transportation infrastructure developments is that the primary effects from these investments are improved travel times and volumes over specific links of the transport network (Chapter 7). These factors then affect the relative accessibility of locations within the impacted area. These accessibility changes can potentially encourage economic growth, provided that market externalities, mainly production and labour market economies, are present. We have already examined the effect of capital accumulation on national and state growth (Chapter 6). In this chapter we focus on local economic growth emanating from transportation improvements, mainly with regard to the use of labour and labour productivity.
