Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters

63 Pages Posted: 3 Feb 2020

See all articles by Jingting Fan

Jingting Fan

Pennsylvania State University, College of the Liberal Arts - Department of Economic

Yi Lu

National University of Singapore (NUS) - Department of Economics

Wenlan Luo

Tsinghua University - School of Economics & Management

Date Written: December 15, 2019

Abstract

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

Fan, Jingting and Lu, Yi and Luo, Wenlan, Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters (December 15, 2019). Available at SSRN: https://ssrn.com/abstract=3528448 or http://dx.doi.org/10.2139/ssrn.3528448

Jingting Fan

Pennsylvania State University, College of the Liberal Arts - Department of Economic ( email )

524 Kern Graduate Building
University Park, PA 16802-3306
United States

Yi Lu

National University of Singapore (NUS) - Department of Economics ( email )

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Singapore
65-65166834 (Phone)

HOME PAGE: http://ylu6.weebly.com

Wenlan Luo (Contact Author)

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

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