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Assessing Socioeconomic Impacts of Transport Infrastructure Projects in the Greater Mekong Subregion

  • Susan Stone

    (Asian Development Bank Institute)

  • Anna Strutt
  • Thomas Hertel

This study attempts to quantify the links between infrastructure investment and poverty reduction using a multi-region general equilibrium model, supplemented with household survey data for the Greater Mekong Subregion (GMS). Infrastructure investment is an important step in economic development, with improvements in transportation infrastructure boosting economic opportunities throughout the region, for example by significantly reducing travel times and costs. In this study, we concentrate on quantifying the effects of some of the key linkages between upgraded infrastructure, economic growth, and poverty reduction. We model the impact of both reducing transport costs and improving trade facilitation in the GMS. Our findings suggest strong gains to the GMS countries as a result of infrastructure development and trade facilitation with national poverty reduced throughout the region. However, the impact on various segments of these populations differs, depending in part on factor returns.

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File URL: http://www.eaber.org/node/22819
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Paper provided by East Asian Bureau of Economic Research in its series Macroeconomics Working Papers with number 22819.

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Date of creation: Jan 2010
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Handle: RePEc:eab:macroe:22819
Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org

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  1. repec:cup:cbooks:9780521029018 is not listed on IDEAS
  2. Thomas W. Hertel & Jeffrey J. Reimer, 2006. "Predicting the Poverty Impacts of Trade Reform," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
  3. Hertel, Thomas & Keeney, Roman & Ivanic, Maros & Winters, Alan, 2007. "Why Isn’t the Doha Development Agenda More Poverty Friendly?," GTAP Working Papers 2292, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  4. Keeney, Roman & Thomas Hertel, 2005. "GTAP-AGR : A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies," GTAP Technical Papers 1869, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  5. Joseph Francois & Miriam Manchin, 2007. "Institutions, Infrastructure, and Trade," IIDE Discussion Papers 20070401, Institue for International and Development Economics.
  6. Ishida, Masami, 2007. "Evaluating the Effectiveness of GMS Economic Corridors: Why is There More Focus on the Bangkok-Hanoi Road than the East-West Corridor?," IDE Discussion Papers 123, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  7. W. Jill Harrison & K.R. Pearson, 1994. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Centre of Policy Studies/IMPACT Centre Working Papers ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
  8. Straub, Stephane & Vellutini, Charles & Warlters, Michael, 2008. "Infrastructure and economic growth in East Asia," Policy Research Working Paper Series 4589, The World Bank.
  9. Cranfield, J. A. L. & Preckel, Paul V & Hertel Thomas W., 2007. "Poverty analysis using an international cross-country demand system," Policy Research Working Paper Series 4285, The World Bank.
  10. H. Brooks, Douglas & F. Stone, Susan, 2010. "Infrastructure and Trade Facilitation in Asian APEC," Asian Development Review, Asian Development Bank, vol. 27(1), pages 135-159.
  11. W. Hertel, Thomas, 2001. "Dynamic Effects of the “New Age” Free Trade Agreement between Japan and Singapore," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 446-484.
  12. Henderson, J. Vernon & Shalizi, Zmarak & Venables, Anthony J., 2000. "Geography and development," Policy Research Working Paper Series 2456, The World Bank.
  13. Straub, Stephane, 2008. "Infrastructure and growth in developing countries : recent advances and research challenges," Policy Research Working Paper Series 4460, The World Bank.
  14. Thomas W. Hertel & Maros Ivanic & Paul V. Preckel & John A. L. Cranfield, 2004. "The Earnings Effects of Multilateral Trade Liberalization: Implications for Poverty," World Bank Economic Review, World Bank Group, vol. 18(2), pages 205-236.
  15. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 879-924, 08.
  16. Christopher Edmonds & Manabu Fujimura, 2008. "Road Infrastructure and Regional Economic Integration: Evidence from the Mekong," Chapters, in: Infrastructure and Trade in Asia, chapter 7 Edward Elgar.
  17. Iimi, Atsushi & Smith, James Wilson, 2007. "what is missing between agricultural growth and infrastructure development ? cases of coffee and dairy in Africa," Policy Research Working Paper Series 4411, The World Bank.
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