Program > Papers by author > Desbordes Rodolphe

Tuesday 13
D8 - Miscellaneous III
Chair: Olivier Bonroy
› 14:25 - 14:50 (25min)
› Room 103 - B. Martinu
Subway Systems and Attractiveness of Cities for FDI
Pierre-Henri Bono  1, *@  , Quentin David  2@  , Rodolphe Desbordes  3@  , Loriane Py  4@  
1 : Département d'économie  (ECON)  -  Website
Sciences Po : EA4460
28, rue des Saints-Pères 75007 Paris -  France
2 : Lille - Economie et Management  (LEM)  -  Website
CNRS : UMR8179, Université Lille I - Sciences et technologies, Fédération Universitaire et Polytechnique de Lille
3 : University of Strathclyde  -  Website
16 Richmond Street, Glasgow G1 1XQ, Scotland, UK -  United Kingdom
4 : Centre de recherche de la Banque de France  -  Website
Banque de France
31 rue Croix des petits champs 75001 PARIS - France -  France
* : Corresponding author

In this paper, we look at the effect that a metro system has on the attractiveness of cities for Foreign Direct Investments (FDI). By 2003, 137 cities were equipped with a metro system. Over the last 15 years, 50 cities build a new metro system while 35 other cities were actually building a system (in 2015). Over the same period (15 years), the total length of subway systems has grown by about 100%. This is to say that metro systems are more and more popular. At the same time, very few papers look at their economic impact on cities. Do cities with a metro system perform better in terms of economic or population growth? Do they attract more investments? To the best of our knowledge, there is one single paper, due to Gonzalez-Navarro and Turner (not published yet) trying to address the question of the impact of metro system on the urban population growth of cities.

In order the study the impact of a metro system on FDI, we build a new and original database at the level of the observed urban areas. For every urban area, we have the number of greenfield FDI (over the period 2003-2014), the information regarding the presence and the length of a metro system (since the creation of the infrastructure) and many additional control variables.

Preliminary results suggest a positive and causal link at both, the intensive and the extensive margin. Differences according to the location (at continental level) and nature of FDI appear.

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