ABSTRACT
We analyse the effect of a large scale infrastructure investment, namely the construction of the Oresund bridge, on the local and supra-regional economy. We employ the synthetic control method to construct counterfactual regions that mimic the trajectory of Malmo and Southern Sweden without treatment. Our results point to a positive effect. However, placebo tests in space and time only reveal statistical significance at a larger regional level. The results suggest that spillover effects are eminent.
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Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 NUTS – Nomenclature of Territorial Units for Statistics is the standardized three-level classification for regional statistics in the European Union.
2 The results only differ marginally when the average GDPpc is calculated over more (or less) points in time. But, more points in time weaken the impact of other predictor variables.
3 For a comparison to the former RMSPE see and in the Appendix.