Exploring the Relationship between Transportation Infrastructure and Regional Economic Growth Using Losch’s Location Theory

  •  Cristiano Farias Almeida    
  •  Francisco Gildemir Ferreira da Silva    
  •  Paulo Henrique Cirino Araujo    


There are some knowledge gaps regarding the relationship between transportation infrastructure and economic development, especially about economic impacts that occur due to implementation of infrastructure in a given region, albeit various studies have addressed the issue. This paper aims to identify variables that affect economic development in order to contribute to the development of a theoretical model that could explain the relationship between transportation infrastructure and economic development. The theoretical model is satisfactory because it begins by analyzing the actions generated by the transportation infrastructure. Moreover, the model is based on the Location Theory considering the economic development and taking into account variables such as transportation costs, gain, product value, consumption, competition between companies and lastly monopoly. Finally, an econometric procedure, Spatial Panel Auto Regressive Vector Model (PVAR), was used to evaluate the relationship between economic development and investments in transportation infrastructure.

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