Road Capacity, Domestic Trade and Regional Outcomes
What is the impact on intranational trade and regional economic outcomes when the quality and lane capacity of an existing paved road network is expanded significantly? This paper investigates this question for the case of Turkey, which undertook a...
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2021
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okr-10986-362802021-09-18T05:10:34Z Road Capacity, Domestic Trade and Regional Outcomes Cosar, A. Kerem Demir, Banu Ghose, Devaki Young, Nathaniel ROAD INFRASTRUCTURE TRANSPORT INFRASTRUCTURE TRADE LOGISTICS TRADE What is the impact on intranational trade and regional economic outcomes when the quality and lane capacity of an existing paved road network is expanded significantly? This paper investigates this question for the case of Turkey, which undertook a large-scale public investment in roads during the 2000s. Using spatially disaggregated data on road upgrades and domestic transactions, the paper estimates a large positive impact of reduced travel times on trade as well as local manufacturing employment and wages. A quantitative exercise using a workhorse model of spatial equilibrium implies heterogeneous effects across locations, with aggregate real income gains reaching 2–3 percent in the long run. Reductions in travel times increased the local employment-to-population ratio but had no effect on local population. The model is extended by endogenizing the labor supply decision to capture this finding. The model-implied elasticity of employment rates to travel time reductions captures about one-third of the empirical elasticity. 2021-09-17T17:42:27Z 2021-09-17T17:42:27Z 2021-09 Working Paper http://documents.worldbank.org/curated/undefined/629521631537099144/Road-Capacity-Domestic-Trade-and-Regional-Outcomes http://hdl.handle.net/10986/36280 English Policy Research Working Paper;No. 9772 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Foreign Institution |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
topic |
ROAD INFRASTRUCTURE TRANSPORT INFRASTRUCTURE TRADE LOGISTICS TRADE |
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ROAD INFRASTRUCTURE TRANSPORT INFRASTRUCTURE TRADE LOGISTICS TRADE Cosar, A. Kerem Demir, Banu Ghose, Devaki Young, Nathaniel Road Capacity, Domestic Trade and Regional Outcomes |
relation |
Policy Research Working Paper;No. 9772 |
description |
What is the impact on intranational
trade and regional economic outcomes when the quality and
lane capacity of an existing paved road network is expanded
significantly? This paper investigates this question for the
case of Turkey, which undertook a large-scale public
investment in roads during the 2000s. Using spatially
disaggregated data on road upgrades and domestic
transactions, the paper estimates a large positive impact of
reduced travel times on trade as well as local manufacturing
employment and wages. A quantitative exercise using a
workhorse model of spatial equilibrium implies heterogeneous
effects across locations, with aggregate real income gains
reaching 2–3 percent in the long run. Reductions in travel
times increased the local employment-to-population ratio but
had no effect on local population. The model is extended by
endogenizing the labor supply decision to capture this
finding. The model-implied elasticity of employment rates to
travel time reductions captures about one-third of the
empirical elasticity. |
format |
Working Paper |
author |
Cosar, A. Kerem Demir, Banu Ghose, Devaki Young, Nathaniel |
author_facet |
Cosar, A. Kerem Demir, Banu Ghose, Devaki Young, Nathaniel |
author_sort |
Cosar, A. Kerem |
title |
Road Capacity, Domestic Trade and Regional Outcomes |
title_short |
Road Capacity, Domestic Trade and Regional Outcomes |
title_full |
Road Capacity, Domestic Trade and Regional Outcomes |
title_fullStr |
Road Capacity, Domestic Trade and Regional Outcomes |
title_full_unstemmed |
Road Capacity, Domestic Trade and Regional Outcomes |
title_sort |
road capacity, domestic trade and regional outcomes |
publisher |
World Bank, Washington, DC |
publishDate |
2021 |
url |
http://documents.worldbank.org/curated/undefined/629521631537099144/Road-Capacity-Domestic-Trade-and-Regional-Outcomes http://hdl.handle.net/10986/36280 |
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1764484925428334592 |