Modelling the regional economic effects of the Danish Great Belt link

Abstract

Different approaches to modelling the impact of transport infrastructure investment on regional economic development are examined, including production function and economic potential approaches. An integrated modelling approach involving both transport costs and models of regional and interregional economic structure is advocated. This approach is applied to the question of forecasting the regional economic effects of the Danish Great Belt link, a major Danish infrastructure investment, due to open in 1997. These effects are shown to be modest.