12 September 2019

Regional Economic Impacts of Cross-Border Infrastructure: A General Equilibrium Application to Thailand and Lao PDR

Written by Asian Development Bank
Developed by Asian Development Bank
12 September 2019
This paper analyzes the economic impacts of the Second Mekong International Bridge linking Mukdahan Province in Thailand with Savannakhet Province in the Lao People's Democratic Republic using a general equilibrium model. The authors find that the reductions in transport costs increase trade volumes and incomes in both regions, and that these benefits increase significantly over time. There is no evidence to support the common presumption that the benefits from cross-border infrastructure projects occur only, or overwhelmingly, in the richer region.
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