Indirect Economic Effects of Transport Investment: An Introduction

  • Hirotada Kohno
  • Masaya Ide


In this paper we intend to: (i) categorize the economic effects (social benefits) brought about by an expressway, (ii) inquire why an indirect effect is enormous compared to a direct one, (iii) analyze in particular the Marshallian external economies and ‘factory scale enlargement’ effects as one of the main constituents of indirect economic effects in the context of technological and pecuniary external economies, (iv) elucidate the non — marketable (technological) propagation process, and (v) derive the proposition that part of the indirect effect is the transferred one aggregated in incidence-base; in addition to this, another part of the indirect economic effect exists independently, that is, the non-transferred indirect economic effect, which is formed by having propagated and amplified marketably and non-marketably by trigger effect, i.e., oil flaring-up effect.


Social Benefit Demand Curve Public Investment Cost Curve Scale Enlargement 
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© Springer-Verlag Berlin · Heidelberg 1993

Authors and Affiliations

  • Hirotada Kohno
  • Masaya Ide

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