Economic development impacts of expenditures for state highway improvements in Texas: preliminary findings

This research project focuses on the economic development impacts of expenditures for state highway improvement. While the scope of this investigation should be viewed as preliminary and largely exploratory in nature, the results indicate that the economic development impacts of expenditures for state highway improvements can be substantial. This research project utilizes a modified version of the Regional Economic Impact Model for Highway Systems (REIMHS) to estimate the economic development impacts of proposed highway improvements in a rural highway corridor in Texas. Based on a review of previous research findings and preliminary testing of the modified REIMHS model it does not appear to be unreasonable to assume that the monetary value of the economic development impacts resulting from highway investments are at least equal to the direct user benefits which have traditionally been the focus of highway economic analyses. This research report also presents several general recommendations concerning: (1) preliminary guidelines for estimating the economic development impacts of expenditures for state highway improvements, (2) additional refinement and testing of the modified REIMHS model, and (3) future research the Department should conduct and/or sponsor in the area of transportation and economic development.