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The Benefits of Regional Infrastructure Investment in Asia: A Quantitative Exploration

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  • Zhai, Fan

    (Asian Development Bank Institute)

Abstract

Capitalizing on recent estimates of infrastructure financing requirements in Asia, this paper frames a scenario for infrastructure development in the region and estimates the external effects of infrastructure investment. It also assesses quantitatively the economy-wide welfare effects of developing regional infrastructure in Asia, using a global computable general equilibrium model. The results show that developing Asian economies would gain significantly from the expansion of regional infrastructure in transport and communication. With annual investment of around US$800 billion in transport, communication, and energy infrastructure during 2010-2020, developing Asia is likely to reap welfare gains of US$1,616.3 billion (in 2008 prices) in 2020, or 10% of projected aggregate gross domestic product.

Suggested Citation

  • Zhai, Fan, 2010. "The Benefits of Regional Infrastructure Investment in Asia: A Quantitative Exploration," ADBI Working Papers 223, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0223
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    References listed on IDEAS

    as
    1. World Bank, 2005. "Global Economic Prospects 2005 : Trade, Regionalism and Development," World Bank Publications - Books, The World Bank Group, number 14783.
    2. Zhai, Fan, 2008. "Armington Meets Melitz: Introducing Firm Heterogeneity in a Global CGE Model of Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 575-604.
    3. Fan Zhai (ed.), 2009. "From Growth to Convergence," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-25060-4, October.
    4. Joseph Francois & Miriam Manchin & Annette Pelkmans-Balaoing, 2009. "Regional Integration in Asia: The Role of Infrastructure," Palgrave Macmillan Books, in: Joseph Francois & Pradumna B. Rana & Ganeshan Wignaraja (ed.), Pan-Asian Integration, chapter 7, pages 439-485, Palgrave Macmillan.
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    Cited by:

    1. Erwin Corong & Lawrence Dacuycuy & Rachel Reyes & Angelo Taningco, 2013. "The Growth and Distributive Impacts of Public Infrastructure Investments in the Philippines," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: John Cockburn & Yazid Dissou & Jean-Yves Duclos & Luca Tiberti (ed.), Infrastructure and Economic Growth in Asia, edition 127, pages 47-86, Springer.
    2. Euijune Kim & Seung‐Woon Moon & Yoojin Yi, 2021. "Analyzing spillover effects of development of Asian highway on regional growth of Northeast Asian countries," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1243-1266, August.
    3. Chin, Gregory, 2012. "Responding to the Global Financial Crisis: The Evolution of Asian Regionalism and Economic Globalization," ADBI Working Papers 343, Asian Development Bank Institute.

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    More about this item

    Keywords

    asian infrastructure financing; asian regional infrastructure; asian infrastructure development;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F15 - International Economics - - Trade - - - Economic Integration

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