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An Application Of An Integrated Transport Network - Multiregional Cge Model To The Calibration Of Synergy Effects Of Highway Investments


  • Euijune Kim
  • Geoffrey Hewings


A transportation network-multiregional CGE model is applied to estimate the synergy effects of a set of highway projects on value added by region and industrial sector. This synergy effect is defined as a difference between the summation of the net GDP increase from the development of each highway sub-link without spatial linkage and the change in GDP resulting from the concurrent development of all links with spatial linkages. Among nine east-west highways in Korea, the East-West 9 highway increases the GDP by 0.3% over the 30-year time period horizon, with 0.016% of the GDP due to the synergy effect. The East-West 9 highway has the largest synergy effect of US$0.164 billion per year on the manufacturing sector of Kwangju Metropolitan Area, resulting in a gain in a regional GRP per capita of US$15.88 per year. Since most synergy effects are generated in less developed regions, highway development can contribute to the reduction in regional disparities.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:ecsysr:v:21:y:2009:i:4:p:377-397
    DOI: 10.1080/09535310903444758

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    Cited by:

    1. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier.
    2. 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.
    3. Euijune Kim & Hyewon Shin, 2014. "Impact Analysis of Economic Linkages of South Korea with North Korea Using a CGE Model," ERSA conference papers ersa14p1512, European Regional Science Association.
    4. Dina N. Elshahawany & Eduardo A. Haddad & Michael L. Lahr, 2016. "Accessibility, Transportation Cost and Regional Growth: A Case Study for Egypt," Working Papers 1049, Economic Research Forum, revised 09 Jan 2016.
    5. Diana N. Elshahawany & Eduardo A. Haddd, Michael L. Lahr, 2015. "The Potential Economic Impacts of the Proposed Development Corridor in Egypt: An Interregional CGE Approach," Working Papers, Department of Economics 2015_42, University of São Paulo (FEA-USP).
    6. repec:eee:retrec:v:61:y:2017:i:c:p:44-55 is not listed on IDEAS


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