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Design of a CGE Model to Evaluate Investment in Transport Infrastructures: An Application for Iran

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  • Seyed Aziz Arman
  • Ahmad Salah Manesh
  • Amin Tabaeh Izady

Abstract

The present paper attempts to design a country scale Computational General Equilibrium (CGE) model to assessment the effects of investment in transport infrastructure. Unlike the previous studies, our model covers impacts of infrastructure expansion on time travel and efficiency of transport capital, simultaneously. After designing, using Iran’s Social Accounting Matrix (SAM) data we apply the model for evaluating the impacts of infrastructure expansion in different modes of transport. Simulation results show that investment in railways has the most effects on Iran’s economic growth and employment than other modes. On the other hand, our results also show that investment in roads can affect household’s welfare more than other infrastructure expansions.

Suggested Citation

  • Seyed Aziz Arman & Ahmad Salah Manesh & Amin Tabaeh Izady, 2015. "Design of a CGE Model to Evaluate Investment in Transport Infrastructures: An Application for Iran," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(3), pages 532-545.
    • Handle: RePEc:asi:aeafrj:v:5:y:2015:i:3:p:532-545:id:1358
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    Cited by:

    1. Eric Tchouamou Njoya & Ahmad Muhammad Ragab, 2022. "Economic Impacts of Public Air Transport Investment: A Case Study of Egypt," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    2. Korrakot Phomsoda & Nattapong Puttanapong & Mongkut Piantanakulchai, 2021. "Assessing Economic Impacts of Thailand’s Fiscal Reallocation between Biofuel Subsidy and Transportation Investment: Application of Recursive Dynamic General Equilibrium Model," Energies, MDPI, vol. 14(14), pages 1-32, July.
    3. Mark Roberts & Martin Melecky & Théophile Bougna & Yan (Sarah) Xu, 2020. "Transport corridors and their wider economic benefits: A quantitative review of the literature," Journal of Regional Science, Wiley Blackwell, vol. 60(2), pages 207-248, March.

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