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Book
Infrastructure and Structural Change in the Horn of Africa
Authors: ---
Year: 2021 Publisher: Washington, D.C. : The World Bank,

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Abstract

Access to infrastructure supports economic development through both capital accumulation and structural transformation. This paper investigates the links between investments in electricity, Internet, and road infrastructure, in isolation and bundled, and economic development in the Horn of Africa, a region that includes countries with different levels of infrastructure and economic development. Using data on the expansion of the road, electricity, and Internet networks over the past two decades, it provides reduced-form estimates of the impacts of infrastructure investments on the sectoral composition of employment. Bundled infrastructure investments cause different patterns of structural transformation than isolated infrastructure investments. The impact of bundled road and electricity investments on reducing the sectoral employment share in agriculture is found to be 2.5 times larger than the impact of roads alone. The paper then uses a spatial general equilibrium model to quantify the impacts of future regional Transport investments, bundled with electricity and trade facilitation measures, on economic development in countries in the Horn of Africa.


Book
How Relevant Is Infrastructure To Growth in East Asia?
Authors: --- ---
Year: 2008 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper seeks to shed some light on the extent to which infrastructure sub-sectors - energy, telecommunications, water supply, sanitation, and transport - contributed to growth in East Asia during 1985-2004. It also attempts to provide additional insights on whether the relationship between infrastructure and growth depends on five additional variables: the degree of private participation in infrastructure, the quality of governance, the extent of rural-urban inequality in access to infrastructure services, country income levels, as well as geography. The findings show that greater stocks of infrastructure were indeed associated with higher growth. However, a more nuanced look at the sensitivity of infrastructure impacts on the five additional variables yields different results, with some sectors supporting conventional expectations and others yielding mixed or counter-intuitive results. In particular, the telecom and sanitation sectors yield statistically significant results supporting the a priori hypotheses; electricity and water infrastructure provide mixed results; and road infrastructure consistently contradicts a priori expectations. The results are consistent with the widely-accepted idea in policy research that infrastructure plays an important role in promoting growth, as well as with the viewpoint that certain countries' endowments influence the growth-related impacts of infrastructure.


Book
Road Infrastructure in Europe and Central Asia : Does Network Quality Affect Trade ?
Authors: ---
Year: 2007 Publisher: Washington, D.C., The World Bank,

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The authors present a new database of minimum distance road routes connecting 138 cities in 27 countries across Europe and Central Asia. They use it to show that improved road network quality is robustly associated with higher intraregional trade flows. Gravity model simulations suggest that an ambitious but feasible road upgrade could increase trade by 50 percent over baseline, exceeding the expected gains from tariff reductions or trade facilitation programs of comparable scope. Cross-country spillovers due to overland transit are important: total intraregional trade could be increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.


Book
Spatial Specialization and Farm-Nonfarm Linkages
Authors: --- ---
Year: 2008 Publisher: Washington, D.C., The World Bank,

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Using individual level employment data from Bangladesh, this paper presents empirical evidence on the relative importance of farm and urban linkages for rural nonfarm employment. The econometric results indicate that high return wage work and self-employment in nonfarm activities cluster around major urban centers. The negative effects of isolation on high return wage work and on self-employment are magnified in locations with higher agricultural potential. The low return nonfarm activities respond primarily to local demand displaying no significant spatial variation. The empirical results highlight the need for improved connectivity of regions with higher agricultural potential to urban centers for nonfarm development in Bangladesh.


Book
How Relevant Is Infrastructure To Growth in East Asia?
Authors: --- ---
Year: 2008 Publisher: Washington, D.C., The World Bank,

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Abstract

This paper seeks to shed some light on the extent to which infrastructure sub-sectors - energy, telecommunications, water supply, sanitation, and transport - contributed to growth in East Asia during 1985-2004. It also attempts to provide additional insights on whether the relationship between infrastructure and growth depends on five additional variables: the degree of private participation in infrastructure, the quality of governance, the extent of rural-urban inequality in access to infrastructure services, country income levels, as well as geography. The findings show that greater stocks of infrastructure were indeed associated with higher growth. However, a more nuanced look at the sensitivity of infrastructure impacts on the five additional variables yields different results, with some sectors supporting conventional expectations and others yielding mixed or counter-intuitive results. In particular, the telecom and sanitation sectors yield statistically significant results supporting the a priori hypotheses; electricity and water infrastructure provide mixed results; and road infrastructure consistently contradicts a priori expectations. The results are consistent with the widely-accepted idea in policy research that infrastructure plays an important role in promoting growth, as well as with the viewpoint that certain countries' endowments influence the growth-related impacts of infrastructure.


Book
Food Prices, Road Infrastructure, and Market Integration in Central and Eastern Africa
Authors: --- ---
Year: 2014 Publisher: Washington, D.C., The World Bank,

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Abstract

Market integration is key to ensuring sufficient and stable food supplies. This paper assesses the impediments to market integration in Central and Eastern Africa for three food staples: maize, rice, and sorghum. The paper uses a large database on monthly consumer prices for 150 towns in 13 African countries and detailed data on the length and quality of roads linking the towns. The analysis finds a substantial effect of distance and share of paved road on the level of market integration, as measured by relative prices. Furthermore, the paper evaluates the additional domestic and cross-border impediments to market integration in the region and represents them on a regional map. The analysis finds heterogeneous levels of domestic market integration across countries and significant "border effects" for the majority of contiguous countries in the sample, which reveal that markets are more integrated within than between countries. Countries that are members of the same regional trade agreement have substantially "thinner" borders with other members. Finally, the analysis shows that countries with less integrated domestic markets and "thicker" borders with their neighbors also have a higher prevalence of food insufficiency. These findings support policy efforts in tackling domestic and border impediments to transactions such as reforming customs, simplifying nontariff measures, addressing corruption, improving the quality of roads, and deepening regional trade agreements.


Book
Road Capacity, Domestic Trade and Regional Outcomes
Authors: --- --- ---
Year: 2021 Publisher: Washington, D.C. : The World Bank,

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What is the impact on intranational trade and regional economic outcomes when the quality and lane capacity of an existing paved road network is expanded significantly? This paper investigates this question for the case of Turkey, which undertook a large-scale public investment in roads during the 2000s. Using spatially disaggregated data on road upgrades and domestic transactions, the paper estimates a large positive impact of reduced travel times on trade as well as local manufacturing employment and wages. A quantitative exercise using a workhorse model of spatial equilibrium implies heterogeneous effects across locations, with aggregate real income gains reaching 2-3 percent in the long run. Reductions in travel times increased the local employment-to-population ratio but had no effect on local population. The model is extended by endogenizing the labor supply decision to capture this finding. The model-implied elasticity of employment rates to travel time reductions captures about one-third of the empirical elasticity.


Book
Road Infrastructure in Europe and Central Asia : Does Network Quality Affect Trade ?
Authors: ---
Year: 2007 Publisher: Washington, D.C., The World Bank,

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Abstract

The authors present a new database of minimum distance road routes connecting 138 cities in 27 countries across Europe and Central Asia. They use it to show that improved road network quality is robustly associated with higher intraregional trade flows. Gravity model simulations suggest that an ambitious but feasible road upgrade could increase trade by 50 percent over baseline, exceeding the expected gains from tariff reductions or trade facilitation programs of comparable scope. Cross-country spillovers due to overland transit are important: total intraregional trade could be increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.


Book
Spatial Specialization and Farm-Nonfarm Linkages
Authors: --- ---
Year: 2008 Publisher: Washington, D.C., The World Bank,

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Abstract

Using individual level employment data from Bangladesh, this paper presents empirical evidence on the relative importance of farm and urban linkages for rural nonfarm employment. The econometric results indicate that high return wage work and self-employment in nonfarm activities cluster around major urban centers. The negative effects of isolation on high return wage work and on self-employment are magnified in locations with higher agricultural potential. The low return nonfarm activities respond primarily to local demand displaying no significant spatial variation. The empirical results highlight the need for improved connectivity of regions with higher agricultural potential to urban centers for nonfarm development in Bangladesh.


Book
Crop Production and Road Connectivity in Sub-Saharan Africa : A Spatial Analysis
Authors: --- --- ---
Year: 2010 Publisher: Washington, D.C., The World Bank,

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Abstract

This study examines the relationship between transport infrastructure and agriculture in Sub-Saharan Africa using new data obtained from geographic information systems (GIS). First, the authors analyze the impact of road connectivity on crop production and choice of technology. Second, they explore the impact of investments that reduce road travel times. Finally, they show how this type of analysis can be used to compare cost-benefit ratios for alternative road investments in terms of agricultural output per dollar invested. The authors find that agricultural production is highly correlated with proximity (as measured by travel time) to urban markets. Likewise, adoption of high-productive/high-input technology is negatively correlated with travel time to urban centers. There is therefore substantial scope for increasing agricultural production in Sub-Saharan Africa, particularly in more remote areas. Total crop production relative to potential production is 45 percent for areas within four hours' travel time from a city of 100,000 people. In contrast, it is just 5 percent for areas more than eight hours away. Low population densities and long travel times to urban centers sharply constrain production. Reducing transport costs and travel times to these areas would expand the feasible market size for these regions. Compared to West Africa, East Africa has lower population density, smaller local markets, lower road connectivity, and lower average crop production per unit area. Unlike in East Africa, reducing travel time does not significantly increase the adoption of high-input/high-yield technology in West Africa. This may be because West Africa already has a relatively well-connected road network.

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