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International transport infrastructure and regional economic development

Author

Listed:
  • Mau, Karsten

    (RS: GSBE MORSE, RS: GSBE FSD, RS: GSBE other - not theme-related research, Macro, International & Labour Economics)

  • Xu, Mingzhi
  • Zheng, Yawen

Abstract

We evaluate how access to international transport infrastructure promotes trade and economic development. Exploiting the gradual unfolding of transcontinental rail freight connections between China and Europe, our empirical findings indicate increasing exports from connected cities, with positive spillovers to other transport modes, neighboring cities, and indicators of economic activity. Not all products and cities are equally responsive to new rail export opportunities. We set up a multi-sector heterogeneous firms model with a rich specification of trade costs, in which firms optimize trade costs by choosing alternative transportation modes and routes. Leveraging a unique data set on trade flows between Chinese cities, we calibrate our model to discuss local welfare effects, relying on a sufficient statistic that quantifies changes in city-level trade costs. We also highlight significant spatial distributional effects of trade infrastructure development.

Suggested Citation

  • Mau, Karsten & Xu, Mingzhi & Zheng, Yawen, 2025. "International transport infrastructure and regional economic development," Research Memorandum 001, Maastricht University, Graduate School of Business and Economics (GSBE).
  • Handle: RePEc:unm:umagsb:2025001
    DOI: 10.26481/umagsb.2025001
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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