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Socioeconomic Impacts of Cross-Border Transport Infrastructure Development in South Asia

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  • John Gilbert
  • Nilanjan Banik

Abstract

Although the overall economic performance of economies in South Asia in recent years has been impressive, there is concern that an aging and increasingly inadequate infrastructure may limit the potential for further growth and economic development. A critical infrastructure component is the transportation network, and there are currently several transportation infrastructure projects in the South Asia Subregional Economic Cooperation (SASEC) region, connecting Nepal, eastern India, Bangladesh, and Bhutan. This paper uses computable general equilibrium (CGE) methods to address how these infrastructure developments might affect the broader economy in SASEC, and in particular impact on income distribution and poverty. The paper describes a new CGE model for South Asia, covering India, Sri Lanka, Bangladesh, Nepal, and Pakistan, which incorporates modifications to household structure in order to capture the implications of reform for changes in intra-household income. The scenarios that are considered reflect proposed investments in land transport infrastructure in the SASEC region. [ADBI Working Paper 211]

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  • John Gilbert & Nilanjan Banik, 2010. "Socioeconomic Impacts of Cross-Border Transport Infrastructure Development in South Asia," Working Papers id:3105, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:3105
    Note: Institutional Papers
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    Cited by:

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    2. van Ruijven, Bas J. & O’Neill, Brian C. & Chateau, Jean, 2015. "Methods for including income distribution in global CGE models for long-term climate change research," Energy Economics, Elsevier, vol. 51(C), pages 530-543.
    3. A S M Abdul Quium, 2019. "Transport Corridors for Wider Socio–Economic Development," Sustainability, MDPI, vol. 11(19), pages 1-23, September.
    4. Aggarwal, Aradhna, 2020. "The Concept, Evolution, Impacts and Critical Success Factors of Regional Economic Corridors," MPRA Paper 110706, University Library of Munich, Germany, revised 16 Nov 2021.
    5. Orlov, Anton & Grethe, Harald & McDonald, Scott, 2010. "An Economy-wide Analysis of an Increase in Energy Prices in Russia: Relevance of the Nesting Structure for Output Effects," Conference papers 331947, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Vaqar, Ahmed & Ghulam, Samad, 2011. "Trade facilitation for economic corridors in South Asia: the perspective of Pakistan," MPRA Paper 31368, University Library of Munich, Germany.
    7. Shahrokhi Shahraki, Hamed & Bachmann, Chris, 2019. "Integrating a Computable General Equilibrium model with empirically calibrated transportation models for border crossing investment analysis," Research in Transportation Economics, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    economic; South Asia; Asia Subregional Economic Cooperation (SASEC); poverty; India; Sri Lanka; Bangladesh; Nepal; intra-household income; investments;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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