infrastructure on economic performance in terms of gains in profits, cost savings, as well as in terms of productivity growth … productivity growth reveals that the economic performance could be enhanced by investing in infrastructure capital …

generating endogenous changes in local productivity. In this paper, we document and quantify the importance of this channel by … delays in the construction of highways, we empirically show that productivity grows in places with better transportation … total factor productivity. Then, by calibrating our model on census data between 1998 and 2018, we find that new highways …