Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters
63 Pages Posted: 3 Feb 2020
Date Written: December 15, 2019
A key input to quantitative evaluations of transport infrastructure projects is their impact on transport costs. This paper proposes a new method of estimating this impact relying on the widely accessible customs data: by using the route choice of exporters. We combine our method with a spatial equilibrium model to study the aggregate effects of the massive expressway construction in China between 1999 and 2010. We find that the construction brings 5.6% welfare gains, implying a net return to investment of 180%. Our analysis also produces some intermediate output of independent interest, for example, a time-varying IV for city-sector export.
Keywords: Transport Infrastructure, Spatial Equilibrium Model, Welfare Evaluation
JEL Classification: R13, R42, F14
Suggested Citation: Suggested Citation