KDI 한국개발연구원 - 경제정책정보 - 발간처별 목록 - 경제분야 국제기구 - EBRD - Road Capacity, Domestic Trade and Regional Outcomes

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Road Capacity, Domestic Trade and Regional Outcomes

EBRD 2020.05.13
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What is the impact on intra-national trade and regional economic outcomes when the quality and lane-capacity of an existing paved road network is expanded significantly? We investigate this question for the case of Turkey, which undertook a large-scale public investment in roads during the 2000s. Using spatially disaggregated data on road upgrades and domestic transactions, we estimate a large positive impact of reduced inter-provincial travel times on trade as well as regional industrial sales and employment. A quantitative exercise using a workhorse model of spatial equilibrium implies a rate of return on investment around 70 percent.

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