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Economic Impact Evaluation of the State Highway Administration in Maryland

An economic study completed for the State Highway Administration by RESI, a research institute of Towson University, has concluded that investments in Maryland's highways result in a 17 percent annual rate of return to the State's economy. The landmark report, which was released in December 1998, is the first study in Maryland to take a comprehensive look at the impact of highway investment in the State.

In 2006, the Maryland Department of Transportation (MDOT) completed a second study which evaluated the impact of surface transportation spending by MDOT in general and by SHA, the Maryland Transit Administration (MTA), and the Washington Metropolitan Area Transit Authority (WMATA) respectively. For SHA, the study concluded that $9.3 billion spent on workers and supplier businesses over a ten year period (1997-2006) leads to a total impact of $23.4 billion in Maryland business activity. That includes $7.8 billion in labor income to Maryland workers and supports an average of 17,007 jobs each year over the 10-year period. This also means that each $1.00 of state highway spending is associated with $2.50 circulating in Maryland’s economy.

The comparison between the two studies was also included in the appendix of the second report. The research indicates that highway investments deliver broad, substantial and lasting benefits to the state's economy. In the short term, money spent to improve and maintain Maryland's highways supports private businesses with employment and the purchase of goods and services. In the longer term, investments in the highway system help create a more efficient economy by reducing the cost of producing those goods and services. The long-term effect helps expand the state's overall economic growth.


For more details download the reports which are available below: 

  • The 1998 Evaluation Study: Economic Impact Evaluation Report (PDF,1029kb)
  • The 2006 Evaluation Study: Economic Impact from Maryland’s Surface Transportation Spending (PDF, 354kb)

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