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Regional Analysis of Domestic Integration in Egypt

Author

Listed:
  • Eduardo Haddad

    (Departamento de Economia, Universidade de São Paulo)

  • Michael Lahr
  • Dina Elshahawany
  • Moises Vassallo

Abstract

We develop an interregional computable general equilibrium model to help assess the ex ante impact of transportation infrastructure policies in Egypt. The model is integrated with a GIS network. We illustrate the analytical capabilities of the model by looking at the domestic integration of the country. Improvements of transportation costs among Egyptian governorates and of their links to the broader world economy are considered in stylized simulations. The results provide quantitative and qualitative insights (general equilibrium effects) into trade-offs commonly faced by policy makers when dealing with transportation infrastructure projects in a spatial context. In the case of Egypt, there seems to be an important trade-off between efficiency and regional equity: projects that produce potential higher impacts on national GDP also tend to contribute more to regional concentration.

Suggested Citation

  • Eduardo Haddad & Michael Lahr & Dina Elshahawany & Moises Vassallo, 2014. "Regional Analysis of Domestic Integration in Egypt," TD NEREUS 1-2015, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    • Handle: RePEc:ris:nereus:2015_001
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    References listed on IDEAS

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    1. Masahisa Fujita & Paul Krugman, 2004. "The new economic geography: Past, present and the future," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 4, pages 177-206.
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    6. 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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    10. Masahisa Fujita & Paul Krugman, 2004. "The new economic geography: Past, present and the future," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 139-164, Springer.
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    Cited by:

    1. Dina N. Elshahawany & Eduardo A. Haddad & Michael L. Lahr, 2017. "Accessibility, transportation cost, and regional growth: a case study for Egypt," Middle East Development Journal, Taylor & Francis Journals, vol. 9(2), pages 256-277, July.
    2. is not listed on IDEAS
    3. 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).

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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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