Abstract
Problems in interurban road investment appraisal are examined. The main questions of this study are (a) whether there are indirect benefits of road investment that should be incorporated in appraisals; (b) what account should be taken of regional effects; and (c) the nature of and what allowance should be made for generated traffic that is included only on an ad hoc basis. A cross-sectional analysis of the relationships between transport costs and subregional employment growth has been carried out.