HIGHWAY INFRASTRUCTURE INVESTMENT AND COUNTY EMPLOYMENT GROWTH: A DYNAMIC PANEL REGRESSION ANALYSIS*

Piyapong Jiwattanakulpaisarn · Robert B. Noland · Daniel J. Graham · John W. Polak

47 citations0/0 files storedJournal of Regional Science

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Fiscal Policy and Economic Growth Regional Economics and Spatial Analysis Regional Economic and Spatial Analysis

Abstract

ABSTRACT This paper uses recent advances in dynamic panel econometrics to examine the impact of highway infrastructure on aggregate county‐level employment using data for all 100 North Carolina counties from 1985 through 1997. Results are compared to models that do not take endogeneity of highway investment and dynamics of employment adjustment into account. Fully specified dynamic models are found to give insignificant results compared to these other models. Thus, when these issues are properly modeled, the results show that improvements in highways have no discernible impact on employment.

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1991Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations 2001Econometric Analysis of Cross Section and Panel Data 1998Initial conditions and moment restrictions in dynamic panel data models 1995Another look at the instrumental variable estimation of error-components models 1995Initial conditions and moment restrictions in dynamic panel data models 2003Analysis of Panel Data 1989Is public expenditure productive?1999GMM estimation with persistent panel data: an application to production functions

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