Resumen de Education, Infrastructure, and Regional Income Performance in Arkansas

Thomas M. Fullerton, Jr., Enedina Licerio, Phuntsho Wangmo

• Although education and infrastructure investments are widely recognized as key ingredients for regional economic development, there are many areas for which empirical estimates of the potential gains associated with these steps do not exist. Arkansas is one such regional economy in the United States. Parameter estimates for the education variables are similar in magnitude to those reported for other regions. Coefficient estimates for the infrastructure variable are not all as hypothesized, but the presence of a commercial airport is confirmed as positively correlated with per capita incomes. Model simulations indicate that raising educational attainment in counties below the respective state averages can generate substantial income gains in Arkansas.