Economic Development Performance Measures and Rural Economic Development in Indiana

An important consideration when identifying and implementing transportation investments is the prospect of economic development. Government agencies are faced with the challenging task of efficiently allocating scarce resources in order to satisfy the physical needs of the state and its communities. The Indiana Department of Transportation has the difficult task of prioritizing projects involving urban and rural transportation investments while attempting to satisfy both local and state needs. Typically, urban settings provide the greatest opportunity for economic development, due to population density, public infrastructure, and ready markets. Consequently, rural areas may get left behind, becoming more isolated and unattractive from a business and even residential standpoint. Therefore a study is needed to identify the methodology that can accurately evaluate the economic impacts of a transportation investment, with emphasis on rural Indiana. A variety of performance measures could be used when evaluating a potential investment. This study has sought to identify and assess economic development performance measures to be used when evaluating transportation investments in rural Indiana.