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Road infrastructure in Europe and Central Asia : does network quality affect trade ?
Author:Shepherd, Ben; Wilson, John S.; Collection Title:Policy, Research working paper ; no. WPS 4104
Country:Albania; Europe and Central Asia; Romania; Hungary; Date Stored:2006/12/22
Document Date:2006/12/01Document Type:Policy Research Working Paper
SubTopics:Common Carriers Industry; Transport Economics Policy & Planning; Free Trade; Transport and Trade Logistics; Trade LawLanguage:English
Region:Europe and Central AsiaReport Number:WPS4104
Volume No:1 of 1  

Summary: 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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