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Transportation plays a crucial role in the location and development of economic activity. Early transportation network development models discussed by Taaffe, Gauthier and O'Kelly (1996) as well as Lowe and Moryadas (1975) help to illustrate the important relationship between the two. These bodies of work clearly show that the most accessible places in a region are associated with a relatively higher level of economic buildup than those places disadvantaged by either the imposed transport network (such as being bypassed by the U.S Interstate highway system), or the lack of transport infrastructure altogether. This relationship between transportation and economic development is often considered to be a chicken-and-egg problem. In other words, does the creation of transportation arteries become an important stimulus for the attraction of economic activity, or does the presence of a potentially exploitable economic resource or comparative advantage (such as mining, agriculture, or even tourism) generate demand for the buildup of a transportation network?
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