Transport Infrastructure and Regional Convergence: a Spatial Panel Data Approach

Abstract

This article examines the contribution of transport infrastructure to the regional convergence in Spain for the period 1980-2008. Spatial econometric techniques are employed to decompose the direct, indirect and total effects of roads, railways, ports and airports. In addition, the analysis is complemented by estimating the determinants of the regional allocation of transport investments. Evidence confirms the presence of absolute and conditional convergence. However, only roads appear to have an impact on this convergence process. It is also understood that the main driver of transport investments has been the equalization of the infrastructure endowment between the different Spanish regions. The reduction of inequalities between regions in terms of road provision could explain the positive contribution of roads to the process of regional convergence in Spain.