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Impact of the EWEC on Development in Border Provinces: Case Study of Savannakhet Province in Lao PDR

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  • Lord, Montague J

Abstract

The study bring together in a systematic manner the available information from recent expenditure and consumption surveys for Laos as they relate to the impact of the East West Economic Corridor (EWEC) on different social and economic aspects of households in the Lao province of Savannakhet. The results of the study sustain a number of conclusions in terms of the transformation of the EWEC from a transport to an economic corridor. In the first place, the central districts of Savannakhet have benefited more from the transport infrastructure of the EWEC that the surrounding districts. Nevertheless, the peripheral areas surrounding the Corridor have benefited in a substantial way from improvements in the feeder road system. The second important finding of the study is that infrastructure development has been an effective way of directly impacting on household well-being and indirectly contributing to human endowments of those households by enhancing their consumption of education and health services. However, the results also indicate that infrastructural developments have not been allocated among districts in the province in a way that could have produced a more equitable distribution of their effects on living standards. The implication of this third finding is that infrastructural investment needs to better target low-income rural areas in the peripheral districts. In that way, public investments could help to reduce the growing inequality among districts in Savannakhet, especially if it were to target low-income groups in remote villages.

Suggested Citation

  • Lord, Montague J, 2010. "Impact of the EWEC on Development in Border Provinces: Case Study of Savannakhet Province in Lao PDR," MPRA Paper 41153, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41153
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    File URL: https://mpra.ub.uni-muenchen.de/41153/1/MPRA_paper_41153.pdf
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    Cited by:

    1. Lord, Montague J., 2012. "Evaluation of Support to Lao PDR’s Special Economic Zones (SEZs)," MPRA Paper 61053, University Library of Munich, Germany.
    2. Lord, Montague J. & Tangtrongjita, Pawat, 2010. "Mapping the organic vegetable value chain along the EWEC," MPRA Paper 42591, University Library of Munich, Germany.

    More about this item

    Keywords

    Cross-border trade; impact analysis; subregional arrangements; East West Economic Corridor; Greater Mekong Subregion;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • P45 - Economic Systems - - Other Economic Systems - - - International Linkages
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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