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Economic impacts of the Kra Canal : an application of the automatic calculation of sea distances by a GIS

Author

Listed:
  • Chen, Ching-mu
  • Kumagai, Satoru

Abstract

A plan to construct a canal through the Kra Isthmus in Southern Thailand has been proposed many times since the 17th century. The proposed canal would become an alternative route to the over-crowded Straits of Malacca. In this paper, we attempt to utilize a Geographical Information System (GIS) to calculate the realistic distances between ports that would be affected by the Kra Canal and to estimate the economic impact of the canal using a simulation model based on spatial economics. We find that China, India, Japan, and Europe gain the most from the construction of the canal, besides Thailand. On the other hand, the routes through the Straits of Malacca are largely beneficial to Malaysia, Brunei, and Indonesia, besides Singapore. Thus, it is beneficial for all ASEAN member countries that the Kra Canal and the Straits of Malacca coexist and complement one another.

Suggested Citation

  • Chen, Ching-mu & Kumagai, Satoru, 2016. "Economic impacts of the Kra Canal : an application of the automatic calculation of sea distances by a GIS," IDE Discussion Papers 568, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper568
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37616&item_no=1&attribute_id=22&file_no=1
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    References listed on IDEAS

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    1. Kumagai, Satoru & Hayakawa, Kazunobu & Isono, Ikumo & Keola, Souknilanh & Tsubota, Kenmei, 2013. "Geographical simulation analysis for logistics enhancement in Asia," Economic Modelling, Elsevier, vol. 34(C), pages 145-153.
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    Cited by:

    1. Chien-Yun Yuan & Cheng-Hsien Hsieh & Dong-Taur Su, 2020. "Effects of new shipping routes on the operational resilience of container lines: potential impacts of the Arctic Sea Route and the Kra Canal on the Europe-Far East seaborne trades," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(2), pages 308-325, June.

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    More about this item

    Keywords

    Asia; Thailand; Canals; Economic geography; Transportation; Kra Canal; Malacca Straits; GIS; Simulation model;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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