Productivity effects of improved accessibility

This research project from Kraks Fond – Institute of Urban Economics examines the causal effects of infrastructure investments and the improved accessibility on firm productivity.

Purpose and background

The causal effects of infrastructure investments and the improved accessibility on firm productivity are of great interest to both policymakers and practitioners. The subject has also attracted increasing attention in the urban economic literature in recent decades.

 

Data and methods

Using a geo-coded micro-level panel dataset for Danish firms, this project will estimate the effect of improved accessibility on firm-level productivity. The required information will be derived from the administrative register data for all Danish firms spread over municipalities. The database contains exhaustive accounts and balance sheet information going back to 1994, e.g. the output (i.e. value-added) and inputs (employment in full-time equivalents, capital stock and materials costs used by all firms in the sample). Moreover, the database will be supplemented with the travel times between municipalities. This information together with the geocoded information on firms will be used to compute the accessibility measure. This accessibility measure will be integrated with the firm-level data and other spatial data on the municipality level.

 

Expected results

This project’s findings will increase our insight into the effects of improved accessibility and improvements in infrastructure on the productivity. The unique Danish register micro panel data combined with the travel time data provide an exceptional opportunity to study agglomeration. In this way, the project increases our understanding of the function of the urban economy.