Rural-Urban Linkages, Public Investment and Transport Costs: The Case of Tanzania

Christopher Adam, David Bevan and Douglas Gollin ()

No 2016-01, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: We develop a multi-sector spatial applied general equilibrium model calibrated to the 2001 Tanzanian Social Accounting Matrix to examine the impact of public investment on household welfare. We examine how different public investment packages combined with reforms in the transport sector alter the equilibrium structure and location of economic activity. The choice of financing arrangements also matters for welfare, since tax incidence, relative price and real exchange rate movements are non-neutral. We also note that welfare gains are generated by the movement of rural workers out of quasi-subsistence agriculture into higher-productivity jobs in other sectors and locations.

Date: 2016
New Economics Papers: this item is included in nep-tre
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Citations: View citations in EconPapers (6)

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Journal Article: Rural–Urban Linkages, Public Investment and Transport Costs: The Case of Tanzania (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:csa:wpaper:2016-01

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