Highways and business location decisions

Economic Development Quarterly

Volumn 10, Issue 3, 1996, Pages 239-248

  Forkenbrock, David J ^a   Foster, Norman S J ^a  

^a NONE

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[No Author keywords available]

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EID: 0030508561     PISSN: 08912424     EISSN: None     Source Type: Journal    
DOI: 10.1177/089124249601000304     Document Type: Article

References (40)

1. David J. Forkenbrock, "Putting Transportation and Economic Development in Perspective," Transportation Research Record 1274 (1991): 3-11.
2. This article focuses on highways connecting cities. Rather different issues exist for urban highways (arterials, expressways, and freeways) due to congestion, urban expansion, and shifts in the spatial arrangement of activities within cities.
3. David J. Forkenbrock and Norman S. J. Foster, "Economic Benefits of a Corridor Highway Investment," Transportation Research 24A (1990): 303-12.
4. Bartik, however, contends that development policies that redistribute economic activity may not really be a zero-sum game. In some cases, competition among locations may increase productivity. See Timothy J. Bartik, Who Benefits from State and Local Economic Development Policies? (Kalamazoo, MI: W. E. Upjohn Institute for Employment Research, 1991), chap. 8.
5. Because of the great expense involved, construction of 65-mph rural interstate highways is likely to be contemplated only when projected traffic volumes are very high. On average, rural interstate highways cost about twice as much as four-lane highways without grade-separated crossings and certain other design features of interstate highways.
6. Benjamin J. Allen, C. Phillip Baumel, and David J. Forkenbrock, "Expanding the Set of Efficiency Gains of a Highway Investment," Transportation Journal 34 (1994): 39-47.
7. This also assumes that safety is not a problem. Making highways safer also substantially reduces transportation costs. See David J. Forkenbrock and Norman S. J. Foster, "Accident Cost Saving and Highway Attributes," Transportation 24, no. 1 (1996); T. Miller, J. Viner, S. Rossman, N. Pindus, W. Gellert, J. Douglas, A. Dillingham, and G. Blomquist, The Cost of Highway Crashes (Washington, DC: U.S. Department of Transportation, 1991) (Report prepared by the Urban Institute).
8. This also assumes that safety is not a problem. Making highways safer also substantially reduces transportation costs. See David J. Forkenbrock and Norman S. J. Foster, "Accident Cost Saving and Highway Attributes," Transportation 24, no. 1 (1996); T. Miller, J. Viner, S. Rossman, N. Pindus, W. Gellert, J. Douglas, A. Dillingham, and G. Blomquist, The Cost of Highway Crashes (Washington, DC: U.S. Department of Transportation, 1991) (Report prepared by the Urban Institute).
9. Bureau of Transportation Statistics, Transportation Statistics Annual Report, 1994 (Washington, DC: U.S. Department of Transportation, 1994), figures 4-6.
10. Ibid., p. 81.
11. Federal Highway Administration, Highway Statistics 1991 (Washington, DC: U.S. Department of Transportation, 1993), p. 200.
12. Ibid., p. 172. See Kenneth A. Small, Clifford Winston, and Carol A. Evans, Road Work: A New Highway Pricing and Investment Policy (Washington, DC: The Brookings Institution, 1989), p. 81.
13. Ibid., p. 172. See Kenneth A. Small, Clifford Winston, and Carol A. Evans, Road Work: A New Highway Pricing and Investment Policy (Washington, DC: The Brookings Institution, 1989), p. 81.
14. Jack Lyne, "States, Provinces Accelerate High-Tech Change," Site Selection Handbook 33 (1988): 630-1.
15. John P. Blair and Robert Premus, "Major Factors in Industrial Location: A Review," Economic Development Quarterly 1 (1987): 72-85.
16. Keith Chapman and David F. Walker, Industrial Location: Principles and Policies, 2nd ed. (Oxford, UK: Basil Blackwell, 1991), pp. 42-4.
17. See Paul D. Larson, "Transportation Deregulation and Logistics Costs," Transportation Quarterly 46 (1992): 261-78.
18. Alan D. MacCormack, Lawrence J. Newman III, and Donald B. Rosenfield, "The New Dynamics of Global Site Location," Sloan Management Review 35 (1994): 69-80.
19. Roger W. Schmenner, Making Business Location Decisions (Englewood Cliffs, NJ: Prentice Hall, 1982).
20. Michael Kieschnick, Taxes and Growth: Business Incentives and Economic Development (Washington, DC: Council of State Planning Agencies, 1981), tables 2-3.
21. Peter Doeringer, David G. Terkla, and Gregory C. Topakian, Invisible Factors in Local Economic Development (New York: Oxford University Press, 1987), p. 95.
22. Timothy J. Bartik, "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business and Economic Statistics 3 (1985): 14-22; Ann Markusen, Peter Hall, and Amy Glasmeier, High Tech America: The What, How, Where, and Why of the Sunrise Industries (Boston: Allen and Unwin, 1986).
23. Timothy J. Bartik, "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business and Economic Statistics 3 (1985): 14-22; Ann Markusen, Peter Hall, and Amy Glasmeier, High Tech America: The What, How, Where, and Why of the Sunrise Industries (Boston: Allen and Unwin, 1986).
24. Niles M. Hanson, The Future of Nonmetropolitan America (Lexington, MA: D. C. Heath, 1973).
25. William H. Miernyk, "The Tools of Regional Development Policy: An Evaluation," Growth and Change 11 (1980): 2-6; Andrew M. Isserman, Terence Rephann, and David J. Sorenson, "Highways and Rural Economic Development" (Paper presented at the Seminar on Transportation Networks and Regional Development, Leningrad, USSR, 1989); Annette M. Gaegler, James W. March, and Paul Weiner, "Dynamic Social and Economic Effects of the Connecticut Turnpike," Transportation Research Record 716 (1979): 28-32; and David Eagle and Yorgos Stephanedes, "Dynamic Highway Impacts on Economic Development," Transportation Research Record 1116 (1987): 56-62.
26. William H. Miernyk, "The Tools of Regional Development Policy: An Evaluation," Growth and Change 11 (1980): 2-6; Andrew M. Isserman, Terence Rephann, and David J. Sorenson, "Highways and Rural Economic Development" (Paper presented at the Seminar on Transportation Networks and Regional Development, Leningrad, USSR, 1989); Annette M. Gaegler, James W. March, and Paul Weiner, "Dynamic Social and Economic Effects of the Connecticut Turnpike," Transportation Research Record 716 (1979): 28-32; and David Eagle and Yorgos Stephanedes, "Dynamic Highway Impacts on Economic Development," Transportation Research Record 1116 (1987): 56-62.
27. William H. Miernyk, "The Tools of Regional Development Policy: An Evaluation," Growth and Change 11 (1980): 2-6; Andrew M. Isserman, Terence Rephann, and David J. Sorenson, "Highways and Rural Economic Development" (Paper presented at the Seminar on Transportation Networks and Regional Development, Leningrad, USSR, 1989); Annette M. Gaegler, James W. March, and Paul Weiner, "Dynamic Social and Economic Effects of the Connecticut Turnpike," Transportation Research Record 716 (1979): 28-32; and David Eagle and Yorgos Stephanedes, "Dynamic Highway Impacts on Economic Development," Transportation Research Record 1116 (1987): 56-62.
28. William H. Miernyk, "The Tools of Regional Development Policy: An Evaluation," Growth and Change 11 (1980): 2-6; Andrew M. Isserman, Terence Rephann, and David J. Sorenson, "Highways and Rural Economic Development" (Paper presented at the Seminar on Transportation Networks and Regional Development, Leningrad, USSR, 1989); Annette M. Gaegler, James W. March, and Paul Weiner, "Dynamic Social and Economic Effects of the Connecticut Turnpike," Transportation Research Record 716 (1979): 28-32; and David Eagle and Yorgos Stephanedes, "Dynamic Highway Impacts on Economic Development," Transportation Research Record 1116 (1987): 56-62.
29. A copy of the questionnaire and a tabulation of results appear in David J. Forkenbrock, Norman S. J. Foster, and Michael R. Crum, Transportation and Iowa's Economic Future (Iowa City: University of Iowa Public Policy Center, 1993), appendix A.
30. Iowa Motor Truck Association, Trucking in Iowa (Des Moines, IA: Iowa Motor Truck Association, 1991), p. 10.
31. We also inquired about the distance to noninterstate four-lane highways connecting cities and obtained comparable results. There are relatively few miles of such highways in either state; 305 of the 9,547 miles of rural primary highways in Iowa and 755 of the 8,187 miles in Missouri.
32. Gaegler, March, and Weiner, "Dynamic Social and Economic Effects."
33. On the graphic for Missouri, the area indicated by closely spaced hatch lines (for ranks 1 and 2) is larger because more respondents rated several factors equally.
34. As is true in other states, Iowa's and Missouri's primary highway systems contain both two-and four-lane segments, with by far the preponderant share having two lanes.
35. Comparable questions were not included in the Missouri survey.
36. In Iowa, none of the rural noninterstate primary road mileage has a volume-to-capacity ratio exceeding 0.8; in Missouri the figure is 0.4%. Regarding condition, the respective mileages in poor condition (present serviceability rating of 2.0 or less) are 1.2% for Iowa and 5.2% for Missouri. Federal Highway Administration, Highway Statistics 1991, pp. 172-3, 177-8.
37. Under certain conditions, environmental cost savings may also occur in rural areas. See Cambridge Systematics, Inc., Incorporation of External Cost Considerations in Highway Cost Allocation (Washington, DC: Cambridge Systematics, Inc., 1995).
38. Forkenbrock, Foster, and Crum, Transportation and Iowa's Economic Future, pp. 58-60.
39. Wilbur Smith Associates, U.S. Highway 20 Corridor Development Study (Columbia, SC: Wilbur Smith Associates, 1992).
40. If the objective is income redistribution, potential transportation investments must be compared to other mechanisms, such as direct income transfers, education, and other services. Because major highway investments involve great expense and in many cases have limited influence on income generation, they are not often likely to be a cost-effective mechanism for redistributing income.