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Infrastructure investments and rural development: The case of Norwegian National Tourist Routes

Simensen, Trym Ekeberg; Skogland, Rasmus Nilsen
Master thesis
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URI
https://hdl.handle.net/11250/2688571
Date
2020
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  • Master of Science [963]
Abstract
This thesis studies the impact of tourism based infrastructure investments on rural

development in Norway by looking at the ongoing case of investment into the

Norwegian National Tourist Routes. Using a generalized difference-in-differences

estimation we look at the impact of opening attractions in different municipalities

across Norway on this set of outcome variables: Population growth,

unemployment, traffic accidents and housing prices. The results from the

difference-in-differences estimates indicate no significant effect of opening

attractions, but the estimates of what we call top attractions show that the number

of traffic accidents increase by 20 to 22 per 1000 inhabitants. While not all of the

models used show significant results for the other variables, top attractions seem

to have a positive effect on population growth and housing prices in some of the

models. With a limited number of our results yielding significant findings, we

cannot conclude that the investment into tourism based infrastructure and tourist

routes have had a noticeable short-run impact on local development at least when

looking at all attractions, while for top attractions there seems to be an increase in

number of traffic accidents. That being said, the analysis has been done while the

project is still ongoing and has only been able to look at the contemporaneous and

short-run effects. Therefore, investment into tourism based infrastructure and

tourist routes might still have a significant impact on local development in the

long-run.
Description
Masteroppgave(MSc) in Master of Science in Business, Economics - Handelshøyskolen BI, 2020
Publisher
Handelshøyskolen BI

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