Infrastructure development across Central Asia facilitates connectivity, competitiveness, productivity, and ultimately economic growth and regional integration. A sample development project is a large road corridor in Kazakhstan. This report shows the economic impact of such a project. The quantitative work follows a dynamic general equilibrium model covering both direct and indirect effects, including trade facilitation, transport cost reduction, and increased productivity. The cumulative indirect impacts benefit Kazakhstan and the many economies linked to it.
Get full access to this article
View all access options for this article.
References
1.
KessidesC.The Contributions of Infrastructure to Economic Development: A Review of Experience and Policy Implications.World Bank, Washington, D.C., 1993.
2.
Sanchez-RoblesB.Infrastructure Investment and Growth: Some Empirical Evidence. Contemporary Economic Policy, Vol. 16, 1998, pp. 98–108.
3.
HultenC.Infrastructure Capital and Economic Growth: How Well You Use It May Be More Important Than How Much You Have. Working Paper 5847. National Bureau of Economic Research, Cambridge, Mass., 1996.
4.
Connecting East Asia: A New Framework for Infrastructure.Asian Development Bank, Japan Bank for International Cooperation, World Bank, Washington, D.C., 2005.
5.
YepesT.Expenditure on Infrastructure in East Asia Region, 2006-2010.Background Paper. Asian Development Bank, Japan Bank for International Cooperation, World Bank, Washington, D.C., 2004.
6.
KwonE.Infrastructure, Growth, and Poverty Reduction in Indonesia: A Cross-Sectional Analysis.Asian Development Bank, Manila, Philippines, 2001.
7.
HoweJ., and RichardsP.Rural Roads and Poverty Alleviation.Intermediate Technology, London, 1984.
8.
HummelsD.Toward a Geography of Trade Costs. Working Paper. Purdue University, Richmond, Ind., 2001.
9.
AndersonJ. E., and Van WincoopE.Trade Costs. Journal of Economic Literature, Vol. 42, No. 3, 2004, pp. 691–751.
EisnerR.Infrastructure and Regional Economic Performance: Comment. New England Economic Review, Sept./Oct. 1991, pp. 47–58.
12.
EbertsR. W.Estimating the Contribution of Urban Public Infrastructure to Regional Economic Growth. Working Paper 8610. Federal Reserve Bank of Cleveland, Ohio, 1986.
13.
DémurgerS.Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China?Journal of Comparative Economics, Vol. 29, 2001, pp. 95–117.
14.
AntleJ. M.Infrastructure and Aggregate Agricultural Productivity: International Evidence. Economic Development and Cultural Change, Vol. 31, 1984, pp. 609–619.
15.
BernardA. B., EatonJ., JensenJ. B., and KortumS. S.Plant and Productivity in International Trade. American Economic Review, Vol. 93, No. 4, 2003, pp. 1268–1290.
16.
BinswangerH., YangC., BowersA., and MundlakY.On the Determinants of Cross-Country Aggregate Agricultural Supply. Journal of Econometrics, Vol. 36, No. 1, 1987, pp. 111–113.
17.
RadeletS., and SachsJ. D.Shipping Costs, Manufactured Exports and Economic Growth.Harvard Institute for International Development, Harvard University, Cambridge, Mass., 1999.
18.
MintenB., and KyleS.The Effects of Distance and Road Quality on Food Collection, Marketing Margins, and Traders' Wages: Evidence from Former Zaire. Journal of Development Economics, Vol. 60, 1999, pp. 467–495.
19.
ShahA.Dynamics of Public Infrastructure Industrial Productivity and Profitability. The Review of Economics and Statistics, Vol. 74, 1992, pp. 28–36.
20.
SongcoJ. A.Do Rural Infrastructure Investments Benefit the Poor? Evaluating Linkages: A Global View, a Focus on Vietnam.Policy Research Working Paper Series 2796. World Bank, Washington, D.C., 2002.
21.
JacobyH.Access to Rural Markets and the Benefits of Rural Roads. The Economic Journal, Vol. 110, 2000, pp. 713–737.
22.
EsfahaniH., and RamirezM. T.Institutions, Infrastructure and Economic Growth. Journal of Development Economics, Vol. 70, 2002, pp. 443–477.
