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Improving on Africa's roads - Modeling infrastructure investment and its effect on subsistence agriculture


  • Schürenberg-Frosch, Hannah


Investment in infrastructure is considered as a crucial prerequisite for economic development. Given the scarce resources for public investment in developing countries a detailed perspective on the effects of each form of infrastructure is needed. This paper focuses on transport infrastructure in Africa. The effects of better and longer roads are investigated in a theoretical model, an empirical setup and in a Computable General Equilibrium (CGS) model. The effects on production, consumption and income distribution are shown. Most importantly the model is used to investigate the effect of roads on the economic participation of rural households. The presented CGE model may be used as a toolkit for the investigation of different policy scenarios concerning the type and volume of investment as well as the possible financing alternatives. Robustness checks show that in order to prevent reliable quantitative results much more information is needed about the exact value of particular parameters in the model.

Suggested Citation

  • Schürenberg-Frosch, Hannah, 2010. "Improving on Africa's roads - Modeling infrastructure investment and its effect on subsistence agriculture," Proceedings of the German Development Economics Conference, Hannover 2010 45, Verein für Socialpolitik, Research Committee Development Economics.
  • Handle: RePEc:zbw:gdec10:45

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    References listed on IDEAS

    1. Demirguc-Kunt, Ash & Levine, Ross, 1996. "Stock Markets, Corporate Finance, and Economic Growth: An Overview," World Bank Economic Review, World Bank Group, vol. 10(2), pages 223-239, May.
    2. Asli Demirgüç-Kunt & Vojislav Maksimovic, 1998. "Law, Finance, and Firm Growth," Journal of Finance, American Finance Association, vol. 53(6), pages 2107-2137, December.
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    More about this item


    Infrastructure; Computable General Equilibrium; Transport networks; Africa; rural development; subsistence agriculture;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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