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Road infrastructure in Europe and Central Asia : does network quality affect trade ?

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  • Shepherd, Ben
  • Wilson, John S.

Abstract

The authors present a new database of minimum distance road routes connecting 138 cities in 27 countries across Europe and Central Asia. They use it to show that improved road network quality is robustly associated with higher intraregional trade flows. Gravity model simulations suggest that an ambitious but feasible road upgrade could increase trade by 50 percent over baseline, exceeding the expected gains from tariff reductions or trade facilitation programs of comparable scope. Cross-country spillovers due to overland transit are important: total intraregional trade couldbe increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.

Suggested Citation

  • Shepherd, Ben & Wilson, John S., 2006. "Road infrastructure in Europe and Central Asia : does network quality affect trade ?," Policy Research Working Paper Series 4104, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4104
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    Cited by:

    1. Iimi,Atsushi & Humphrey,Richard Martin & Melibaeva,Sevara, 2015. "Firm productivity and infrastructure costs in east Africa," Policy Research Working Paper Series 7278, The World Bank.
    2. Robert C. Feenstra & Hong Ma, 2014. "Trade Facilitation and the Extensive Margin of Exports," The Japanese Economic Review, Japanese Economic Association, vol. 65(2), pages 158-177, June.
    3. Jaime MELO DE & Céline CARRERE & John WILSON, 2009. "The Distance Effect and the Regionalization of the Trade of Low-Income Countries," Working Papers 200908, CERDI.
    4. Olivier Cadot & Ana Fernandes & Julien Gourdon & Aaditya Mattoo & Jaime Melo, 2014. "Evaluating Aid for Trade: A Survey of Recent Studies," The World Economy, Wiley Blackwell, vol. 37(4), pages 516-529, April.
    5. Matthias Helble & Catherine Mann & John Wilson, 2012. "Aid-for-trade facilitation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 357-376, June.
    6. Valenzuela-Klagges, Bárbara & Corvalán-Quiroz, Alejandro & Fuenzalida-O'Shee, Darcy, 2018. "Trade facilitation and its effects on Chile’s bilateral trade between 2006 and 2014," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    7. Richard Newfarmer & William Shaw & Peter Walkenhorst, 2009. "Breaking Into New Markets," World Bank Publications - Books, The World Bank Group, number 2616.
    8. Richard Pomfret, 2011. "Trade and Transport in Central Asia," Book Chapters, in: Werner Hermann & Johannes F. Linn (ed.), Central Asia and the Caucasus: At the Crossroads of Eurasia in the 21st Century, chapter 3, pages 43–62, Emerging Markets Forum.
    9. Céline Carrère & Jaime de Melo & John Wilson, 2013. "The Distance Puzzle And Low-Income Countries: An Update," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 717-742, September.
    10. World Bank, 2011. "Challenges to Enterprise Performance in the Face of the Financial Crisis : Eastern Europe and Central Asia," World Bank Publications - Books, The World Bank Group, number 2316.
    11. Kashiha, Mona & Thill, Jean-Claude & Depken, Craig A., 2016. "Shipping route choice across geographies: Coastal vs. landlocked countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 1-14.
    12. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
    13. Andrea Bonilla‐Bolaños, 2021. "A step further in the theory of regional integration: A look at the South American integration strategy," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 845-873, July.
    14. Theodore Tsekeris & Charalambos Tsekeris & Gerassimos Karabelias, 2011. "Exploring the Role of Greece in the Development of Infrastructure Networks in Southeastern Europe," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(1), pages 99-111, September.
    15. Ryuichi Shibasaki & Satoshi Tanabe & Hironori Kato & Paul Tae-Woo Lee, 2019. "Could Gwadar Port in Pakistan Be a New Gateway? A Network Simulation Approach in the Context of the Belt and Road Initiative," Sustainability, MDPI, vol. 11(20), pages 1-28, October.
    16. Pomfret, Richard, 2007. "Distortions to Agricultural Incentives in Kazakhstan," Agricultural Distortions Working Paper Series 48360, World Bank.
    17. repec:lic:licosd:18807 is not listed on IDEAS
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    19. Zsoka Koczan & Alexander Plekhanov, 2013. "How important are non-tariff barriers? Complementarity of infrastructure and institutions of trading partners," Working Papers 159, European Bank for Reconstruction and Development, Office of the Chief Economist.
    20. Laura Márquez-Ramos, 2016. "Port facilities, regional spillovers and exports: Empirical evidence from Spain," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 329-351, June.
    21. Thomas Orliac, 2012. "The economics of trade facilitation [L'économie de la facilitation des échanges]," SciencePo Working papers Main tel-03681980, HAL.
    22. Shepherd, Ben & Wilson, John S., 2009. "Trade facilitation in ASEAN member countries: Measuring progress and assessing priorities," Journal of Asian Economics, Elsevier, vol. 20(4), pages 367-383, September.
    23. Patricia Sourdin & Richard Pomfret, 2012. "Trade Facilitation," Books, Edward Elgar Publishing, number 14596.

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    Keywords

    Transport Economics Policy&Planning; Free Trade; Common Carriers Industry; Transport and Trade Logistics; Trade Law;
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