We show with the aid of pooled OLS estimations that investments in improved road infrastructure have the potential to signficantly reduce transport costs. However, this result can only be clearly con rmed for industrial countries and is of primary importance for production and transportation of...

The distribution of transport infrastructure across space is the outcome of deliberate government planning that reflects a desire to unlock the welfare gains from regional economic integration. Yet, despite being one of the oldest government activities, the economic forces shaping the endogenous...