IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v95y2020icp78-92.html
   My bibliography  Save this article

Synergy effects of highway investments on the Turkish economy: An application of an integrated transport network with a multiregional CGE model

Author

Listed:
  • Piskin, Metin
  • Hewings, Geoffrey J.D.
  • Hannum, Christopher M.

Abstract

We develop a Multi-Regional Spatial Computable General Equilibrium (TurkSCGE) model for economic analysis of highway projects, estimating their impacts on regional welfare and economic outcomes in Turkey. The framework integrates a transport sub-model that estimates minimum distances with a multiregional Computable General Equilibrium model that estimates economic aggregates. TurkSCGE identifies eight sectors in each of 11 regions. Three experiments explore the impacts of decreases in transportation margins from ‘distance shortening’. The three highway projects involved are estimated to yield a combined increase in GDP of 1.6%. However, the new highways in eastern Turkey, connecting eastern regions to each other and the west are shown to be best options for improving welfare in poorer regions.

Suggested Citation

  • Piskin, Metin & Hewings, Geoffrey J.D. & Hannum, Christopher M., 2020. "Synergy effects of highway investments on the Turkish economy: An application of an integrated transport network with a multiregional CGE model," Transport Policy, Elsevier, vol. 95(C), pages 78-92.
    • Handle: RePEc:eee:trapol:v:95:y:2020:i:c:p:78-92
    DOI: 10.1016/j.tranpol.2020.05.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X19308248
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2020.05.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kim, Euijune & Hewings, Geoffrey J.D. & Amir, Hidayat, 2017. "Economic evaluation of transportation projects: An application of Financial Computable General Equilibrium model," Research in Transportation Economics, Elsevier, vol. 61(C), pages 44-55.
    2. P. Nijkamp (ed.), 1987. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 1, number 1.
    3. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    4. Euijune Kim & Yujin Bae, 2015. "Economic Contribution of the Private Sector on Financing and Operation of a Highway: Financial Computable General Equilibrium," Journal of Transport Economics and Policy, University of Bath, vol. 49(3), pages 397-414, July.
    5. Haddad, Eduardo A. & Hewings, Geoffrey J.D., 2005. "Market imperfections in a spatial economy: some experimental results," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 476-496, May.
    6. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Springer;Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
    7. Eduardo A. Haddad & Geoffrey J. D. Hewings & Fernando S. Perobelli & Raul A. C. dos Santos, 2010. "Regional Effects of Port Infrastructure: A Spatial CGE Application to Brazil," International Regional Science Review, , vol. 33(3), pages 239-263, July.
    8. Metin Piskin & Christopher M. Hannum, 2017. "Constructing a Multi-Regional Social Accounting Matrix for Turkey," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(4), pages 176-196.
    9. World Bank, 2012. "Turkey - Transport Sector Expenditure Review : Synthesis Report," World Bank Publications - Reports 12307, The World Bank Group.
    10. Alicia H. Munnell, 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 189-198, Fall.
    11. Euijune Kim & Geoffrey Hewings & Chowoon Hong, 2004. "An Application of an Integrated Transport Network- Multiregional CGE Model: a Framework for the Economic Analysis of Highway Projects," Economic Systems Research, Taylor & Francis Journals, vol. 16(3), pages 235-258.
    12. Garcia-Mila, Teresa & McGuire, Therese J & Porter, Robert H, 1996. "The Effect of Public Capital in State-Level Production Functions Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 177-180, February.
    13. Nijkamp, Peter & Rietveld, Piet & Snickars, Folke, 1987. "Regional and multiregional economic models: A survey," Handbook of Regional and Urban Economics, in: P. Nijkamp (ed.), Handbook of Regional and Urban Economics, edition 1, volume 1, chapter 7, pages 257-294, Elsevier.
    14. Euijune Kim & Geoffrey Hewings, 2009. "An Application Of An Integrated Transport Network - Multiregional Cge Model To The Calibration Of Synergy Effects Of Highway Investments," Economic Systems Research, Taylor & Francis Journals, vol. 21(4), pages 377-397.
    15. Ülengin, Füsun & Özaydın, Özay & Ülengin, Burç & Kopp, Andreas & Önsel, Şule & Kabak, Özgür & Aktaş, Emel, 2013. "Are road transportation investments in line with demand projections? A gravity-based analysis for Turkey," Transport Policy, Elsevier, vol. 29(C), pages 227-235.
    16. Zhenhua Chen & Kingsley B. Haynes, 2014. "Regional Economic Output and Public Surface Transportation Infrastructure: A Spatial Granger Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 44(3), pages 263-279, Winter.
    17. Buckley, Patrick H, 1992. "A Transportation-Oriented Interregional Computable General Equilibrium Model of the United States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 26(4), pages 331-348, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Korrakot Phomsoda & Nattapong Puttanapong & Mongkut Piantanakulchai, 2021. "Assessing Economic Impacts of Thailand’s Fiscal Reallocation between Biofuel Subsidy and Transportation Investment: Application of Recursive Dynamic General Equilibrium Model," Energies, MDPI, vol. 14(14), pages 1-32, July.
    2. Jialing Liang & Huiming Zong, 2024. "Temporal and Spatial Pattern of Expressway Construction in China from 1999 to 2019 and Its Correlation with Regional Economic Growth," Land, MDPI, vol. 13(12), pages 1-17, November.
    3. Proque, Andressa Lemes & Betarelli Junior, Admir Antonio & Perobelli, Fernando Salgueiro, 2022. "Fuel tax, cross subsidy and transport: Assessing the effects on income and consumption distribution in Brazil," Research in Transportation Economics, Elsevier, vol. 95(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robson, Edward N. & Wijayaratna, Kasun P. & Dixit, Vinayak V., 2018. "A review of computable general equilibrium models for transport and their applications in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 31-53.
    2. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    3. Kim, Euijune & Hewings, Geoffrey J.D. & Amir, Hidayat, 2017. "Economic evaluation of transportation projects: An application of Financial Computable General Equilibrium model," Research in Transportation Economics, Elsevier, vol. 61(C), pages 44-55.
    4. Anu Tokila & Mika Haapanen, 2012. "Evaluation of Deadweight Spending in Regional Enterprise Financing," Regional Studies, Taylor & Francis Journals, vol. 46(2), pages 185-201, May.
    5. Euijune Kim & Geoffrey J.D. Hewings & Hidayat Amir, 2015. "Project Evaluation of Transportation Projects: an Application of Financial Computable General Equilibrium Model," ERSA conference papers ersa15p453, European Regional Science Association.
    6. Bartlomiej Rokicki & Eduardo A. Haddad & Jonathan M. Horridge & Marcin Stępniak, 2021. "Accessibility in the regional CGE framework: the effects of major transport infrastructure investments in Poland," Transportation, Springer, vol. 48(2), pages 747-772, April.
    7. Euijune Kim & Seung-Woon Moon & Shigemi Kagawa, 2019. "Spatial economic linkages of economic growth and air pollution: developing an air pollution-multinational CGE model of China, Japan, and Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(2), pages 255-268, October.
    8. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Publications - Reports 8083, The World Bank Group.
    9. Beckman, Jayson & Hertel, Thomas, 2009. "Why Previous Estimates of the Cost of Climate Mitigation Might Be Too Low," Conference papers 331860, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Haughwout, Andrew F., 1998. "Aggregate Production Functions, Interregional Equilibrium, and the Measurement of Infrastructure Productivity," Journal of Urban Economics, Elsevier, vol. 44(2), pages 216-227, September.
    11. Zhenhua Chen & Kingsley E. Haynes, 2015. "Regional Impact of Public Transportation Infrastructure," Economic Development Quarterly, , vol. 29(3), pages 275-291, August.
    12. Silvia Bertarelli, 2006. "Public capital and growth," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
    13. Mitra, Arup & Sharma, Chandan & Véganzonès-Varoudakis, Marie-Ange, 2016. "Infrastructure, information & communication technology and firms’ productive performance of the Indian manufacturing," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 353-371.
    14. Rivera, Berta & Currais, Luis, 2004. "Public Health Capital and Productivity in the Spanish Regions: A Dynamic Panel Data Model," World Development, Elsevier, vol. 32(5), pages 871-885, May.
    15. Fedderke, J.W. & Perkins, P. & Luiz, J.M., 2006. "Infrastructural investment in long-run economic growth: South Africa 1875-2001," World Development, Elsevier, vol. 34(6), pages 1037-1059, June.
    16. Jason Timmins, 2005. "Is Infrastructure Productive? Evaluating the effects of specific infrastructure projects on firm productivity within New Zealand," Working Papers 05_14, Motu Economic and Public Policy Research.
    17. Delorme, Charles Jr. & Thompson, Herbert Jr. & Warren, Ronald Jr., 1999. "Public Infrastructure and Private Productivity: A Stochastic-Frontier Approach," Journal of Macroeconomics, Elsevier, vol. 21(3), pages 563-576, July.
    18. Magazzino, Cosimo & Giolli, Lorenzo, 2021. "The relationship among railway networks, energy consumption, and real added value in Italy. Evidence form ARDL and Wavelet analysis," Research in Transportation Economics, Elsevier, vol. 90(C).
    19. Konno, Akio & Kato, Hironori & Takeuchi, Wataru & Kiguchi, Riku, 2021. "Global evidence on productivity effects of road infrastructure incorporating spatial spillover effects," Transport Policy, Elsevier, vol. 103(C), pages 167-182.
    20. Zhenhua Chen & Kingsley E. Haynes, 2015. "Public surface transportation and regional output: A spatial panel approach," Papers in Regional Science, Wiley Blackwell, vol. 94(4), pages 727-751, November.

    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:95:y:2020:i:c:p:78-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.