This paper examines the impact of highway expansion on aggregate productivity growth and sectoral reallocation between … and indirect impact of trade costs on city productivity. I then construct an instrumental variable to examine the causal … productivity growth by facilitating firm entry, exit and reallocation. I also find evidence that the national highway system led to …

efficient operation of cities by facilitating business activities and improving worker productivity. The literature has devoted … productivity show positive, but in some cases statistically insignificant, effects of public capital stock on productivity. Most of … the productivity of firms in urban areas. More research is needed to explore the interrelationships between urban size and …