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Socioeconomic Impacts of Cross-Border Transport Infrastructure Development in South Asia

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  • John Gilbert
  • Nilanjan Banik

Abstract

Although the overall economic performance of economies in South Asia in recent years has been impressive, there is concern that an aging and increasingly inadequate infrastructure may limit the potential for further growth and economic development. A critical infrastructure component is the transportation network, and there are currently several transportation infrastructure projects in the South Asia Subregional Economic Cooperation (SASEC) region, connecting Nepal, eastern India, Bangladesh, and Bhutan. This paper uses computable general equilibrium (CGE) methods to address how these infrastructure developments might affect the broader economy in SASEC, and in particular impact on income distribution and poverty. The paper describes a new CGE model for South Asia, covering India, Sri Lanka, Bangladesh, Nepal, and Pakistan, which incorporates modifications to household structure in order to capture the implications of reform for changes in intra-household income. The scenarios that are considered reflect proposed investments in land transport infrastructure in the SASEC region. [ADBI Working Paper 211]

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Paper provided by eSocialSciences in its series Working Papers with number id:3105.

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Date of creation: Nov 2010
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Handle: RePEc:ess:wpaper:id:3105

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Keywords: economic; South Asia; Asia Subregional Economic Cooperation (SASEC); poverty; India; Sri Lanka; Bangladesh; Nepal; intra-household income; investments;

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Cited by:
  1. Vaqar, Ahmed & Ghulam, Samad, 2011. "Trade facilitation for economic corridors in South Asia: the perspective of Pakistan," MPRA Paper 31368, University Library of Munich, Germany.
  2. DREZE, Jacques & DURRE, Alain, 2013. "Fiscal integration and growth stimulation in Europe," CORE Discussion Papers 2013013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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