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Highway-Induced Development: Evidence from Sri Lanka

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  • Gunasekera, Kumudu
  • Anderson, William
  • Lakshmanan, T.R.
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    Abstract

    Summary When transport investments are made in relatively infrastructure poor newly industrializing regions, the consequences extend beyond growth effects to some transformational changes. This paper empirically estimates the direction and the magnitude of some of the consequent transformational changes induced via a highway project in Sri Lanka. These changes were estimated at the firm and household level via a series of production function and multivariate analyses. In light of the observed results it is likely that traditional impact studies, by failing to incorporate transformational shifts (i.e., working under the assumption of a non-changing economic structure) significantly underestimate project benefits and costs.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 36 (2008)
    Issue (Month): 11 (November)
    Pages: 2371-2389

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    Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2371-2389

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: South Asia Sri Lanka induced development transport infrastructure impact studies;

    References

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    Cited by:
    1. Hooi Lean, Hooi & Huang, Wei & Hong, Junjie, 2014. "Logistics and economic development: Experience from China," Transport Policy, Elsevier, vol. 32(C), pages 96-104.
    2. Zhaofang Chu, 2012. "Logistics and economic growth: a panel data approach," The Annals of Regional Science, Springer, vol. 49(1), pages 87-102, August.

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