Final published version, 696 KB, PDF document
Research output: Working paper
Research output: Working paper
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TY - UNPB
T1 - Does Transport Infrastructure Benefit Gdp Growth?
AU - Bai, Yuting
AU - Wang, Shuo
AU - Zhang, Hongxu
PY - 2023/6/30
Y1 - 2023/6/30
N2 - This paper examines how transport infrastructure affects GDP growth by reducing trade costs. Our empirical analysis confirms that improving transport infrastructure quality lowers trade costs, and we estimate the elasticity of trade costs relative to transport infrastructure quality. Specifically, a 1% improvement in average transport infrastructure quality between an emerging and a developedeconomy can reduce bilateral trade costs by up to 0.71%. To estimate the net effect of changes in infrastructure on GDP growth via trade cost, we used the Computational General Equilibrium framework. Our results demonstrate significant potential for improving GDP growth in different groups of countries based on economic development (i.e., developing countries, emerging countries, and developed countries). We identify and examine the broader implications of transport infrastructure development for the global economy.
AB - This paper examines how transport infrastructure affects GDP growth by reducing trade costs. Our empirical analysis confirms that improving transport infrastructure quality lowers trade costs, and we estimate the elasticity of trade costs relative to transport infrastructure quality. Specifically, a 1% improvement in average transport infrastructure quality between an emerging and a developedeconomy can reduce bilateral trade costs by up to 0.71%. To estimate the net effect of changes in infrastructure on GDP growth via trade cost, we used the Computational General Equilibrium framework. Our results demonstrate significant potential for improving GDP growth in different groups of countries based on economic development (i.e., developing countries, emerging countries, and developed countries). We identify and examine the broader implications of transport infrastructure development for the global economy.
KW - transport
KW - infrastructure
KW - growth
KW - markets
M3 - Working paper
T3 - Economics Working Papers Series
BT - Does Transport Infrastructure Benefit Gdp Growth?
PB - Lancaster University, Department of Economics
CY - Lancaster
ER -