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Highway-Induced Development: Evidence from Sri Lanka


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


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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  • Gunasekera, Kumudu & Anderson, William & Lakshmanan, T.R., 2008. "Highway-Induced Development: Evidence from Sri Lanka," World Development, Elsevier, vol. 36(11), pages 2371-2389, November.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2371-2389

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    References listed on IDEAS

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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. Andrew R. Goetz, 2011. "The Global Economic Crisis, Investment in Transport Infrastructure, and Economic Development," Chapters,in: Transportation and Economic Development Challenges, chapter 3 Edward Elgar Publishing.
    3. Zhaofang Chu, 2012. "Logistics and economic growth: a panel data approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 87-102, August.
    4. Stephen G. Perz & Flavia L. Leite & Lauren N. Griffin & Jeffrey Hoelle & Martha Rosero & Lucas Araujo Carvalho & Jorge Castillo & Daniel Rojas, 2015. "Trans-Boundary Infrastructure and Changes in Rural Livelihood Diversity in the Southwestern Amazon: Resilience and Inequality," Sustainability, MDPI, Open Access Journal, vol. 7(9), pages 1-30, September.
    5. repec:eee:trapol:v:60:y:2017:i:c:p:24-33 is not listed on IDEAS


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