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Bridging the gap: how transport infrastructure reduces bilateral trade costs to fuel GDP growth

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Bridging the gap: how transport infrastructure reduces bilateral trade costs to fuel GDP growth. / Amankwah-Amoah, Joseph; Bai, Yuting; Liu, Ligang et al.
In: Journal of Chinese Economic and Business Studies, Vol. 23, No. 2, 31.05.2025, p. 295-320.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Amankwah-Amoah, J, Bai, Y, Liu, L, Wang, S & Zhang, H 2025, 'Bridging the gap: how transport infrastructure reduces bilateral trade costs to fuel GDP growth', Journal of Chinese Economic and Business Studies, vol. 23, no. 2, pp. 295-320. https://doi.org/10.1080/14765284.2025.2472502

APA

Amankwah-Amoah, J., Bai, Y., Liu, L., Wang, S., & Zhang, H. (2025). Bridging the gap: how transport infrastructure reduces bilateral trade costs to fuel GDP growth. Journal of Chinese Economic and Business Studies, 23(2), 295-320. https://doi.org/10.1080/14765284.2025.2472502

Vancouver

Amankwah-Amoah J, Bai Y, Liu L, Wang S, Zhang H. Bridging the gap: how transport infrastructure reduces bilateral trade costs to fuel GDP growth. Journal of Chinese Economic and Business Studies. 2025 May 31;23(2):295-320. Epub 2025 Mar 15. doi: 10.1080/14765284.2025.2472502

Author

Amankwah-Amoah, Joseph ; Bai, Yuting ; Liu, Ligang et al. / Bridging the gap : how transport infrastructure reduces bilateral trade costs to fuel GDP growth. In: Journal of Chinese Economic and Business Studies. 2025 ; Vol. 23, No. 2. pp. 295-320.

Bibtex

@article{f2c1b071b0234373b4a16167616134b3,
title = "Bridging the gap: how transport infrastructure reduces bilateral trade costs to fuel GDP growth",
abstract = "Although scholars generally recognize infrastructure development as a pivotal pillar for economic progress, a gap remains in the current literature regarding how transport infrastructure affects GDP growth. This study examines how transport infrastructure impacts GDP growth by reducing trade costs. It confirms that improving the quality of transport infrastructure lowers these costs. Specifically, a 1% improvement in the average transport infrastructure quality between an emerging and a developed economy can reduce bilateral trade costs by up to 0.71%. To estimate the net effect of changes in infrastructure on GDP growth via trade costs, we used the Computational General Equilibrium framework. The results demonstrate significant potential for enhancing GDP growth across different groups of countries based on their level of economic development (i.e. developing countries, emerging countries, and developed countries). The broader implications of transport infrastructure development for the global economy are also examined.",
keywords = "transport, infrastructure, growth, markets",
author = "Joseph Amankwah-Amoah and Yuting Bai and Ligang Liu and Shuo Wang and Hongxu Zhang",
year = "2025",
month = may,
day = "31",
doi = "10.1080/14765284.2025.2472502",
language = "English",
volume = "23",
pages = "295--320",
journal = "Journal of Chinese Economic and Business Studies",
issn = "1476-5284",
publisher = "Routledge",
number = "2",

}

RIS

TY - JOUR

T1 - Bridging the gap

T2 - how transport infrastructure reduces bilateral trade costs to fuel GDP growth

AU - Amankwah-Amoah, Joseph

AU - Bai, Yuting

AU - Liu, Ligang

AU - Wang, Shuo

AU - Zhang, Hongxu

PY - 2025/5/31

Y1 - 2025/5/31

N2 - Although scholars generally recognize infrastructure development as a pivotal pillar for economic progress, a gap remains in the current literature regarding how transport infrastructure affects GDP growth. This study examines how transport infrastructure impacts GDP growth by reducing trade costs. It confirms that improving the quality of transport infrastructure lowers these costs. Specifically, a 1% improvement in the average transport infrastructure quality between an emerging and a developed economy can reduce bilateral trade costs by up to 0.71%. To estimate the net effect of changes in infrastructure on GDP growth via trade costs, we used the Computational General Equilibrium framework. The results demonstrate significant potential for enhancing GDP growth across different groups of countries based on their level of economic development (i.e. developing countries, emerging countries, and developed countries). The broader implications of transport infrastructure development for the global economy are also examined.

AB - Although scholars generally recognize infrastructure development as a pivotal pillar for economic progress, a gap remains in the current literature regarding how transport infrastructure affects GDP growth. This study examines how transport infrastructure impacts GDP growth by reducing trade costs. It confirms that improving the quality of transport infrastructure lowers these costs. Specifically, a 1% improvement in the average transport infrastructure quality between an emerging and a developed economy can reduce bilateral trade costs by up to 0.71%. To estimate the net effect of changes in infrastructure on GDP growth via trade costs, we used the Computational General Equilibrium framework. The results demonstrate significant potential for enhancing GDP growth across different groups of countries based on their level of economic development (i.e. developing countries, emerging countries, and developed countries). The broader implications of transport infrastructure development for the global economy are also examined.

KW - transport

KW - infrastructure

KW - growth

KW - markets

U2 - 10.1080/14765284.2025.2472502

DO - 10.1080/14765284.2025.2472502

M3 - Journal article

VL - 23

SP - 295

EP - 320

JO - Journal of Chinese Economic and Business Studies

JF - Journal of Chinese Economic and Business Studies

SN - 1476-5284

IS - 2

ER -