The impact of transport system on income: an economic-geographic approach
Date
2009-10
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Abstract
Due to the increasing public transportation facilities in our country, interests in studying the interrelations of these road networks to growth and development potential, and economic activities have become extensive for the past years. This paper reviews and discusses the impact of municipal/city distance from nearest NLEX exit point on municipal/city income, and uses instrumental variables to establish causality. The review includes approaches based on the transport system interface and one of the common geography theories. The fields of Economics and Geography are employed to view the over-all impact of road networks and municipality structure on income. In the Philippines, one of its outstanding road transport systems is the North Luzon Expressway (NLEX). The economic model derives the criticality of the proximity of the NLEX to any municipality/city using concepts from welfare economics and geography. To derive approximate insights into assessing critical components, a model based on economic geography is developed. This model describes the effect of distance on spatial interactions, considering the importance of transport system. The authors conclude that proximity to a transport system is significantly related to locality income.
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Keywords
Transport system, Income, Transport industry, Transport infrastructure, Public transportation