Road Infrastructure in Europe and Central Asia [electronic resource] : Does Network Quality Affect Trade ? / Shepherd, Ben

By: Shepherd, BenContributor(s): Shepherd, Ben | Wilson, John SMaterial type: TextTextPublication details: Washington, D.C., The World Bank, 2007Description: 1 online resource (46 p.)Subject(s): Bottlenecks | Costs | High Transport | Initiatives | Investments | Road | Road Improvement | Road Infrastructure | Road Network | Road Quality | Road Transport | Roads | Route | Routes | Trans Transit Routes | Transport | Transport Costs | Transport Data | Transport Economics, Policy and Planning | Travel | TrueAdditional physical formats: Shepherd, Ben.: Road Infrastructure in Europe and Central Asia.Online resources: Click here to access online 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 could be increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.
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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 could be increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.

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