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Title in English New highways are not enough to reduce unemployment in regions

MIČÚCH Marek TVRZ Stanislav

Year of publication 2015
Type Article in Periodical
Magazine / Source BIATEC
MU Faculty or unit

Faculty of Economics and Administration

Web text článku
Field Economy
Keywords infrastructure, transportation, labour market, unemployment, panel data
Description The article presents panel-data tests that, applying econometric models, examine relations between the opening of new highway or motorway sections and the unemployment rate in respective regions of Slovakia. In the tests, no strongly positive and sustained effects of new roads on the regional unemployment rate have been observed, which would confirm that long-term unemployment was reduced in particular districts. New roads, however, led to a decreased district unemployment rate in pre-crisis periods. At the same time, the results showed that the effects of new road opening have been temporary and never lasted more than two years. Besides opening new roads, other factors also seem necessary in order to decrease unemployment. Relevant additional long-term strategies may include investment to education, promotion of science, improvement of market environment, or enhanced quality of law and its better enforcement.

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