CASE STUDIES OF THE ECONOMIC IMPACT OF HIGHWAY BYPASSES IN KANSAS - Download this document for free, or read online. Document in PDF available to download.

The construction of highway bypasses has resulted in many economic benefits both forintercity motorists as well as residents of towns with bypasses. Despite the benefits of bypasses,they remain controversial. Local business owners in the town being bypassed fear that thereduction of traffic passing through the town will adversely affect their sales.The purpose of this study is to add to the literature concerning the economic impact ofhighway bypasses on small towns. The measured impacts are (1) total employment of bypasstowns, (2) retail sales of the towns' travel-related businesses, (3) employment of the towns'travel-related businesses, and (4) the bypass town as a whole.To measure the impact of the bypasses on total employment of bypass towns, each of thenine sample towns was matched with a group of control towns. Total employment of eachbypass town was regressed on total employment of its control towns and a bypass dummyvariable used to measure the effect of the bypass. The equations were estimated by ordinaryleast squares (OLS) regression. The other three impacts were obtained by interviewing theowners and managers of 54 travel-related businesses located in the nine bypass towns.The statistical results are consistent with the hypothesis that the bypass did not have astatistically significant effect on total employment of the bypass towns. In the opinion of most ofthe owners and managers of the travel-related businesses the bypasses had a negative impact ontheir retail sales and employment, and on the town as a whole. There was a substantial variationin opinion regarding the impact of the bypass on company retail sales, and employment, and onthe town as a whole among the industry groups in the sample.

Subject(s): Research and Development/Tech Change/Emerging Technologies

Research Methods/ Statistical Methods

Issue Date: 2004-03

Publication Type: Conference Paper/ Presentation

PURL Identifier:

Total Pages: 38

Record appears in: Transportation Research Forum > 45th Annual Transportation Research Forum, Evanston, Illinois, March 21-23, 2004

Author: Babcock, Michael W. ; Davalos, Jose A.



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