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The social profitability of rural roads in a small open economy: Do urban agglomeration economies matter?

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Abstract

The effects of a rural roads programme depend on labour mobility, how the programme is financed, and agglomeration economies. If financed by a rural poll tax and cross‐price effects and agglomeration economies are sufficiently small, the wage will rise, with some return migration. Taxes on trade act as countervailing distortions, yielding urban households some relief. Rural‐urban commuting promotes the exploitation of agglomeration economies; taxes on international trade are then inferior to a poll tax. The change in the value, at producer prices, of the rural sector's net supply vector can be a poor measure of the programme's social profitability. Los efectos de un programa de carreteras rurales dependen de la movilidad de la mano de obra, de la financiación del programa y de las economías de aglomeración. Si se financia con un impuesto de capitación rural y los efectos de los precios cruzados y las economías de aglomeración son lo suficientemente pequeños, el salario aumentará, con cierta migración de retorno. Los impuestos sobre el comercio actúan como distorsiones compensatorias, lo que proporciona a los hogares urbanos un cierto alivio. Los desplazamientos diarios del campo a la ciudad favorecen la explotación de las economías de aglomeración; los impuestos sobre el comercio internacional son entonces inferiores a un impuesto de capitación. La variación del valor, a precios de productor, del vector de oferta neta del sector rural puede ser una medida deficiente de la rentabilidad social del programa. 農村地域の道路整備プログラムの効果は、労働移動、プログラムの資金調達方法、および集積経済に依存する。農村部の人頭税を原資とし、交差価格の効果と集積経済が十分に小さければ、賃金は上昇し、いくらかの帰還移住がある。取引に対する課税は歪みを相殺する働きをし、都市部の家計にいくらかの救済をもたらす。農村部と都市部間の通勤は集積経済による搾取を促進するが、国際取引に対する課税は人頭税に劣る。農村セクターの純供給ベクトルの生産者価格での価値の変化には、プログラムの社会的収益性を測定する能力はない可能性がある。

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  • Clive Bell, 2022. "The social profitability of rural roads in a small open economy: Do urban agglomeration economies matter?," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 373-397, April.
  • Handle: RePEc:bla:presci:v:101:y:2022:i:2:p:373-397
    DOI: 10.1111/pirs.12649
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