The impact of highway investment on new manufacturing employment in South Carolina: a small region spatial analysis

Abstract

A geographical information system (GIS) is used with econometric methods to develop a small region spatial model to analyze the linkage betwen highway investment and new manufacturing employment in South Carolina. OLS estimates of the spatial model indicate that increases in four-lane highways, as well as interstate access, and two-lane highway density stimulate new manufacturing firm employment. Regions with higher than average employment density consistently influence employment gains as well. An implication for state and local policy makers is that the location, timing, and type of highway investment matter concerning whether highway investment serves as an economic development aid. Comparison of non-spatial and spatial model results indicates that development of small region models incorporating spatial statistical concerns should be pursued further. -from Authors