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Trade, Infrastructure, and Roadways in Europe and Central Asia: New Empirical Evidence

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Author Info

  • Shepherd, Ben

    ()
    (The World Bank)

  • Wilson, John S.

    (The World Bank)

Abstract

Infrastructure quality is a crucial determinant of trade. To assess the importance of regional infrastructure externalities, we use detailed overland transit information from an original road network database. Gravity model simulations suggest that an ambitious but feasible road upgrade could increase trade by 50% over baseline, exceeding the expected gains from tariff reductions or trade facilitation programs of comparable scope. Cross-country spillovers due to overland transit are very large: total intraregional trade could be increased by 30% by upgrading roads in just three countries—Albania, Hungary and Romania. These results bolster the case for regional coordination of infrastructure investments.

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Bibliographic Info

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 22 (2007)
Issue (Month): ()
Pages: 723-747

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Handle: RePEc:ris:integr:0413

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Web page: http://econo.sejong.ac.kr/
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Related research

Keywords: International Trade; Europe and Central Asia; Road Transport; Trade Facilitation; Gravity Model;

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Cited by:
  1. Shepherd , Ben & Wilson, John S., 2008. "Trade facilitation in ASEAN member countries : measuring progress and assessing priorities," Policy Research Working Paper Series 4615, The World Bank.
  2. Yue Li & John S. Wilson, 2009. "Trade Facilitation and Expanding the Benefits of Trade: Evidence from Firm Leval Data," Working Papers 7109, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  3. Yann Duval & Chorthip Utoktham, 2009. "Behind-the-Border Trade Facilitation in Asia-Pacific: Cost of Trade, Credit Information, Contract Enforcement and Regulatory Coherence," Working Paper Series 209, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

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