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Road infrastructure in Europe and Central Asia : does network quality affect trade ?


  • Shepherd, Ben
  • Wilson, John S.


The authors present a new database of minimum distance road routes connecting 138 cities in 27 countries across Europe and Central Asia. They use it to show that improved road network quality is robustly associated with higher intraregional trade flows. Gravity model simulations suggest that an ambitious but feasible road upgrade could increase trade by 50 percent over baseline, exceeding the expected gains from tariff reductions or trade facilitation programs of comparable scope. Cross-country spillovers due to overland transit are important: total intraregional trade couldbe increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.

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  • Shepherd, Ben & Wilson, John S., 2006. "Road infrastructure in Europe and Central Asia : does network quality affect trade ?," Policy Research Working Paper Series 4104, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4104

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    References listed on IDEAS

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    Cited by:

    1. Pomfret, Richard, 2007. "Distortions to Agricultural Incentives in Kazakhstan," Agricultural Distortions Working Paper 48360, World Bank.
    2. Robert C. Feenstra & Hong Ma, 2014. "Trade Facilitation and the Extensive Margin of Exports," The Japanese Economic Review, Japanese Economic Association, vol. 65(2), pages 158-177, June.
    3. Jaime MELO DE & Céline CARRERE & John WILSON, 2009. "The Distance Effect and the Regionalization of the Trade of Low-Income Countries," Working Papers 200908, CERDI.
    4. Olivier Cadot & Ana Fernandes & Julien Gourdon & Aaditya Mattoo & Jaime Melo, 2014. "Evaluating Aid for Trade: A Survey of Recent Studies," The World Economy, Wiley Blackwell, vol. 37(4), pages 516-529, April.
    5. Richard Newfarmer & William Shaw & Peter Walkenhorst, 2009. "Breaking Into New Markets," World Bank Publications, The World Bank, number 2616, March.
    6. Laura Márquez-Ramos, 2016. "Port facilities, regional spillovers and exports: Empirical evidence from Spain," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 329-351, June.
    7. Shepherd, Ben & Wilson, John S., 2009. "Trade facilitation in ASEAN member countries: Measuring progress and assessing priorities," Journal of Asian Economics, Elsevier, vol. 20(4), pages 367-383, September.
    8. Kashiha, Mona & Thill, Jean-Claude & Depken, Craig A., 2016. "Shipping route choice across geographies: Coastal vs. landlocked countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 1-14.
    9. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
    10. Theodore Tsekeris & Charalambos Tsekeris & Gerassimos Karabelias, 2011. "Exploring the Role of Greece in the Development of Infrastructure Networks in Southeastern Europe," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(1), pages 99-111, September.

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    Transport Economics Policy&Planning; Free Trade; Common Carriers Industry; Transport and Trade Logistics; Trade Law;

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