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Highways and Spatial Development

Author

Listed:
  • Ghani, Ejaz

    (World Bank)

  • Goswami, Arti Grover

    (World Bank)

  • Kerr, William R.

    (Harvard Business School)

Abstract

This Economic Premise examines the link between highways and spatial development. The Golden Quadrilateral (GQ) highway project in India—5,846 km of highways linking four major urban hubs—improved the connectivity and market accessibility of districts close to the highway compared to those more removed. Non-nodal districts located within 0–10 km from the highway experienced substantial increases in entry of new enterprises. The highways facilitated a more natural sorting of industries that are land and building intensive, improved efficiency in the manufacturing industries, and encouraged decentralization of urban transformation by making intermediate cities more attractive. Understanding these patterns is important for policy makers, because well-targeted infrastructure projects can improve resource reallocation, accelerate spatial development, and also promote shared prosperity.

Suggested Citation

  • Ghani, Ejaz & Goswami, Arti Grover & Kerr, William R., 2013. "Highways and Spatial Development," World Bank - Economic Premise, The World Bank, issue 131, pages 1-6, December.
    • Handle: RePEc:wbk:prmecp:ep131
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    References listed on IDEAS

    as
    1. Ejaz Ghani & Arti Grover Goswami & William R. Kerr, 2012. "Is India’s Manufacturing Sector Moving Away From Cities?," Harvard Business School Working Papers 12-090, Harvard Business School.
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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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