The Importance of Interstate Highways to Economic Development in Nebraska

This chapter focuses on one aspect of economic growth: the post-construction effect of interstate highways on income and sales expansion. Using data for all Nebraska and Iowa counties, interstate highways are found to have the most positive economic impact on areas with larger populations; small areas are not likely to experience much more than short-term gains. This finding has significant implications for the planned construction of a north-south, four-lane highway in Nebraska. The route of such a highway should be selected only after a careful look at the ability of local areas to capitalize on highway-induced growth impulses.