Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters
Year: 2021
Type: article
Abstract: A key input to quantitative evaluations of transport infrastructure projects is their impact on transport costs. We propose a new method of estimating this impact relying on widely accessible customs data: by using the route choice of exporters. We combine our method with a spatial equilibrium model to study the effects of the massive expressway construction in China between 1999 and 2010. We find transport costs are 20% lower on expressways than on regular roads. The expressways construction increases aggregate exports by 10% and domestic trade by 14%. It generates 5.1% welfare gains, implying a 150% net return to investment.
DOI: 10.1162/rest_a_01084
Authors: Jingting Fan, Yi Lu, Wenlan Luo
Institutions: Pennsylvania State University, Tsinghua University
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3195863447