Findings from a Penn State University study show while costly, developments such as bridges, bike lanes and railroads can significantly improve a region’s economic status and their neighbouring counterparts.
The first-of-its-kind research came from a partnership with the Pennsylvania Department of Transportation (PennDOT) and examined development across the state’s 67 counties. To conduct the study, experts focused on four areas which were:
- Economic performance indicators – the income and employment levels of an area’s population
- Socio-demographic indicators – the average age of workers and their family size
- Transportation investments, such as improvements to bridges and roads
- Existing transportation infrastructure usage
‘Although there is a general understanding that investments in transportation infrastructure have an impact on the economic development of an area, it’s always been hard to quantify,’ Vikash Gayah, professor of civil and environmental engineering and co-author of the paper said. ‘The models we developed through this study help us showcase the impact that infrastructure like bridges and traffic signals have on not just a specific region, but the surrounding counties as well.’
Within the study, which was published in the International Journal of Transportation Science and Technology, bridges were found to have the biggest impact of all investments – increasing them by just a mere 1% lead to more than a 0.08% increase in gross domestic product.
What’s more, investments in roads and traffic safety infrastructure was discovered to have the greatest economic improvement on neighbouring counties. This is as a result of spatial spillover, according to Ilgin Guler, second author of the study.
‘Our goal with this research was to examine how investments in transportation infrastructure influence the economic activity of the local communities surrounding the investments,’ Guler explained. ‘Specifically, we wanted to create a model that clearly accounts for spatial spillover between counties when calculating the impact of an infrastructure development in an area.’
‘The more variables in our data, the better we can develop and adjust our model to present an accurate picture of the economic impacts a region would see following an investment,’ he continued.
‘When you’re looking at the impact of major infrastructure investments like roads and bridges, smaller counties saw the largest improvement in their economic performance. Similar investments in bigger counties saw returns as well, but they were lower relative to the economic size of the smaller counties.’
Going forward, both Guler and Gayah have expressed how their findings can help create a clearer picture of how improving county-specific transportation can benefit an entire state’s economy.
‘We believe our models can provide valuable information to inform policy decisions and investments across the state,’ Gayah said. ‘It could help taxpayers support infrastructure development across county lines, because it showcases how even if the investment isn’t happening in their county, it will have a positive impact on them.’
The research can be accessed in full here.
Alongside Guler and Gayah, Asif Mahmud, who graduated from Penn State in 2023 with a doctorate in civil and environmental engineering, co-authored the paper.
Photo by Ricardo Gomez Angel via UnSplash
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