TEUL3007 - Transport investment and economic growth elasticities

This project will build upon and review existing academic literature which evaluates the impact of transport interventions on GDP. The current evidence in this space is varied, with Melo, et. al. (2013) estimating a mean elasticity of 0.060 and a median elasticity of 0.016. However, only 31% of the interventions in this sample took place in Europe, raising questions around the study's application of the elasticity to the UK context. Whilst this study states that there is likely to be even greater returns to investment in economic infrastructure including transport (up to a third greater impact), there is limited evidence supporting this assertion. This research will update the existing evidence base and provide elasticity estimates more rel