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The Potential Economic Impacts Of The Proposed Development Corridor In Egypt: An Interregional Cge Approach

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  • EDUARDO AMARAL HADDAD
  • DINA N. ELSHAHAWANY
  • MICHAEL L. LAHR

Abstract

Egypt has proposed a new development corridor. A main component is a desert-based expansion of the current highway network. This network is founded on a 1200-kilometer north-south route that starts at a proposed new port near El-Alemein and runs parallel to the Nile Valley to the border of Sudan. It also includes 21 east-west branches that connect the main axis to densely populated cities on the Nile. The paper is a first attempt at an economic assessment of the impact of this proposed corridor. It uses an interregional computable general equilibrium (CGE) model developed and reported in a prior paper. Here, that model is integrated with a more detailed geo-coded transportation network model to help quantify the spatial effects of transportation cost change due specifically to changes in accessibility induced by the corridor. The paper focuses on the likely structural economic impacts that such a large investment in transportation could enable through a series of simulations related to the operational phase of the project.
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Suggested Citation

  • Eduardo Amaral Haddad & Dina N. Elshahawany & Michael L. Lahr, 2016. "The Potential Economic Impacts Of The Proposed Development Corridor In Egypt: An Interregional Cge Approach," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 171, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
  • Handle: RePEc:anp:en2015:171
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    References listed on IDEAS

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    1. Johannes BrÃcker, 1998. "original: Operational spatial computable general equilibrium modeling," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(3), pages 367-387.
    2. André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), 2011. "A Handbook of Transport Economics," Books, Edward Elgar Publishing, number 12679.
    3. Johannes Bröcker & Martin Schneider, 2002. "How Does Economic Development in Eastern Europe Affect Austria's Regions? A Multiregional General Equilibrium Framework," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 257-285.
    4. André De Palma & Robin Lindsey & Emile Quinet & Robert Vickerman, 2011. "Handbook Of Transport Economics," Post-Print halshs-00754912, HAL.
    5. Eduardo Haddad & Michael Lahr & Dina Elshahawany & Moisés Vassallo, 2015. "Regional Analysis of Domestic Integration in Egypt," ERSA conference papers ersa15p159, European Regional Science Association.
    6. Euijune Kim & Hong Sok Kim & Geoffrey J. D. Hewings, 2011. "An Application of the Integrated Transport Network-Multi-regional CGE Model An Impact Analysis of Government-Financed Highway Projects," Journal of Transport Economics and Policy, University of Bath, vol. 45(2), pages 223-245, May.
    7. 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.
    8. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    9. Eduardo Amaral Haddad & Fernando Salgueiro Perobelli & Edson Paulo Domingues & Mauricio Aguiar, 2011. "Assessing the ex ante economic impacts of transportation infrastructure policies in Brazil," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 3(1), pages 44-61.
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    More about this item

    JEL classification:

    • 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
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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