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Evaluating Impacts of Cross-Border Transport Infrastructure in the Greater Mekong Subregion: Three Approaches

Publication | August 2017
Evaluating Impacts of Cross-Border Transport Infrastructure in the Greater Mekong Subregion: Three Approaches

The Greater Mekong Subregion has recently seen remarkable progress in developing cross-border transport infrastructure along its economic corridors.

We present three approaches to the evaluation of cross-border transport infrastructure in the Greater Mekong Subregion (GMS). First, we estimate benefit-cost ratios for selected segments of economic corridors. The results indicate differing degrees of economic viability among different corridors. Second, we present a panel data analysis on how economic corridor developments have impacted living standards at subnational level. The results indicate that economic corridors in the GMS show a positive net economic impact. Third, we present a gravity model analysis on how economic corridors have affected intra-GMS trade. The results indicate positive effects of the development of economic corridors on intra-GMS trade in intermediate goods, especially for electric machinery. This implies that cross-border transport infrastructure in the GMS has contributed to lower service link costs and facilitated vertical integration across borders in this industry.

WORKING PAPER NO: 771