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

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.

This is the author’s final version, the article has been accepted for publication in the Review of Economics and Statistics.

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Work Title Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters
Access
Open Access
Creators
  1. Jingting Fan
  2. Yi Lu
  3. Wenlan Luo
License In Copyright (Rights Reserved)
Work Type Article
Publisher
  1. The Review of Economics and Statistics
Publication Date November 17, 2023
Publisher Identifier (DOI)
  1. https://doi.org/10.1162/rest_a_01084
Deposited March 11, 2024

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Version 1
published

  • Created
  • Added china_road_combined.pdf
  • Added Creator Jingting Fan
  • Added Creator Yi Lu
  • Added Creator Wenlan Luo
  • Published
  • Updated Work Title Show Changes
    Work Title
    • VALUING DOMESTIC TRANSPORT INFRASTRUCTURE: A VIEW FROM THE ROUTE CHOICE OF EXPORTERS
    • Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters
  • Updated Publisher Show Changes
    Publisher
    • Review of Economics and Statistics
    • The Review of Economics and Statistics
  • Updated