HIGHWAYS AND BUSINESS LOCATION DECISIONS

Local government leaders quite often contend that upgraded highways ar e important to their communities' economic development potential. This article examines the degree to which investments in high-capacity hig hways are likely to influence business location decisions, given the m ature nature of the interurban highway system in the United States. Th e authors examine the conceptual relationship between highway investme nts and facility location, review literature on location factors, and present the findings of surveys of business facility managers in Misso uri and Iowa. They conclude that access to a highway generally has bec ome less of a factor in location decisions and discuss the implication s of this conclusion for state-level highway investment policy.