SearchIn Swedish
Research report | 6/16/2019

Does investment in transport infrastructure boost economic growth?

6/16/2019 - The Swedish government will spend 700 billion kronor (approximately USD72 billion) on the 2018–2029 transport infrastructure plan. A key argument for this huge budget is the widespread notion that infrastructure investments boost economic growth.

It is also indisputable that the develop¬ment of the Swedish railroads in the 19th century, and the extensive road expansion during the 1950s, 1960s and 1970s had transformative effects on society. But a key reason for the large effects on society was that the existing travel opportu¬nities were so limited. For instance, the travel time between Stockholm and Malmö was reduced from eight days to 19 hours when the southern main railroad opened in the 1860s. But because the transport infrastructure is already so well developed in postmodern countries, such transformational investments are no longer possible. So what is the evidence that transport investments improve economic growth today? That is the central question of this report.

Research programs

Sustainable Urban and Rural Planning

Subject

Environment, Climate and Energy

More from Sustainable Urban and Rural Planning

To research program
  • SNS Research Brief Housing and Infrastructure

    SNS Research Brief 81. Prices, construction costs and competition in the Swedish housing market

    In this report, economists Mats Bergman and Sten Nyberg describe the rapid rise in housing prices in Sweden ever since the 1990s...
  • SNS Research Brief Environment, Climate and Energy

    SNS Research Brief 70. Air quality and children’s health. English summary

    During days of reduced air quality due to so-called inversions, the proportion of children visiting hospitals due to respiratory problems goes up by nearly 5 percent. Children from poor families are particularly affected. This is shown in a new report from SNS, which also shows that the introduction of congestion taxes in Stockholm has resulted in a substantially reduced number of healthcare visits for children suffering from asthma.
  • SNS Research Brief Housing and Infrastructure

    SNS Research Brief 67. Economic impact of investments in digital infrastructure. English Summary

    The expansion of broadband internet in Norway resulted in firms exhibiting increased productivity, greater wage differences between individuals with high and low levels of education, and an increase in the negative impact of distance on international trade. These are the results in one of the few studies having successfully shown the causal effects of digital infrastructure on the economy. This study is presented in the new SNS report “Economic impact of investments in digital infrastructure” by economist Anders Åkerman.
  • Research report Environment, Climate and Energy

    The Swedish electricity market: power to the people

    The electricity market is facing major challenges. For example, local power shortages are becoming an increasingly serious problem. However, thinking that a more active and flexible consumption of electricity among households will help remedy this situation is naive, according to economist Mattias Vesterberg in a new SNS report. In order for households to have an impact in this regard, they need greater financial incentives.

Other research report on Environment, Climate and Energy

See all research report

Subscribe to our Newsletter

Stay updated with our latest insights, seminars and research news.