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.
Original language | English (US) |
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Pages (from-to) | 1562-1579 |
Number of pages | 18 |
Journal | Review of Economics and Statistics |
Volume | 105 |
Issue number | 6 |
DOIs | |
State | Published - Nov 17 2023 |
All Science Journal Classification (ASJC) codes
- Social Sciences (miscellaneous)
- Economics and Econometrics