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Transportation Infrastructure Investments And Trade Liberalization

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  • ERIC W. BOND

Abstract

This paper examines the gains from cooperative agreements on transportation infrastructure investments when there are terms of trade and technological spillovers between countries. In a two ‐country model, cooperation on investment levels will result in a lower level of transport costs. However, the cooperative equilibrium may have a higher or lower level of infrastructure investment between the partner countries in the case of preferential liberalization. The paper also addresses the desirability of linking trade and infrastructure agreements when investment choices can be used strategically.

Suggested Citation

  • Eric W. Bond, 2006. "Transportation Infrastructure Investments And Trade Liberalization," The Japanese Economic Review, Japanese Economic Association, vol. 57(4), pages 483-500, December.
    • Handle: RePEc:bla:jecrev:v:57:y:2006:i:4:p:483-500
    DOI: 10.1111/j.1468-5876.2006.00399.x
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    Cited by:

    1. Sergei Guriev & Mikhail Klimenko, 2015. "Duration and Term Structure of Trade Agreements," Economic Journal, Royal Economic Society, vol. 125(589), pages 1818-1849, December.
    2. Chun-Chieh Wang, 2011. "Aid for trade as a public good," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 20(6), pages 711-728, September.
    3. Akihiko Yanase & Ngo Van Long & Ngo Van Long, 2020. "Trade Costs and Strategic Investment in Infrastructure in a Dynamic Global Economy with Symmetric Countries," CESifo Working Paper Series 8707, CESifo.
    4. Mun, Se-il, 2019. "Joint provision of transportation infrastructure," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    5. Hussain, Muhammad Noshab, 2023. "Evaluating the impact of air transportation, railway transportation, and trade openness on inbound and outbound tourism in BRI countries," Journal of Air Transport Management, Elsevier, vol. 106(C).
    6. Zhao Shurong & Koffi Dumor & Victor Curtis Lartey & Onesmus Mbaabu Mutiiria & Edem Koffi Amouzou & Komlan Gbongli, 2024. "Assessing the macroeconomic effects of China–Eastern African BRI transport infrastructure on Eastern African countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 996-1011, January.
    7. Jozef Gnap & Šimon Senko & Mariusz Kostrzewski & Mária Brídziková & Renáta Cződörová & Zdeněk Říha, 2021. "Research on the Relationship between Transport Infrastructure and Performance in Rail and Road Freight Transport—A Case Study of Japan and Selected European Countries," Sustainability, MDPI, vol. 13(12), pages 1-20, June.
    8. Eric W. Bond, 2008. "Adjustment Costs and the Sequencing of Trade Liberalisation," The World Economy, Wiley Blackwell, vol. 31(1), pages 97-111, January.
    9. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    10. Mun, Se-il & Nakagawa, Shintaro, 2010. "Pricing and investment of cross-border transport infrastructure," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 228-240, July.
    11. Akihiko Yanase & Makoto Tawada, 2020. "Public infrastructure and trade in a dynamic two‐country model," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 447-465, May.
    12. Kadijat Adeleke, Oluwayemisi & Abamba Osakede, Uche & Monisola Ajeigbe, Omowunmi, 2021. "Trade Liberalization And Infrastructure Development: Evidence From The Economic Community Of West African States," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(3), pages 1-20, June.
    13. Akihiko Yanase & Ngo Van Long, 2020. "Strategic Investment in an International Infrastructure Capital: Nonlinear Equilibrium Paths in a Dynamic Game between Two Symmetric Countries," Mathematics, MDPI, vol. 9(1), pages 1-24, December.
    14. Feder, Christophe, 2018. "Decentralization and spillovers: A new role for transportation infrastructure," Economics of Transportation, Elsevier, vol. 13(C), pages 36-47.
    15. Se-il Mun & Shintaro Nakagawa, 2008. "Cross-border transport infrastructure and aid policies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 465-486, June.
    16. Lorz, Oliver, 2020. "Investment in trade facilitating infrastructure: A political-economy analysis," European Journal of Political Economy, Elsevier, vol. 65(C).

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