Economic impacts of the Kra Canal: an application of the automatic calculation of sea distances by a GIS

Chen Ching-mu and Kumagai Satoru

No 568, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: A plan to construct a canal through the Kra Isthmus in Southern Thailand has been proposed many times since the 17th century. The proposed canal would become an alternative route to the over-crowded Straits of Malacca. In this paper, we attempt to utilize a Geographical Information System (GIS) to calculate the realistic distances between ports that would be affected by the Kra Canal and to estimate the economic impact of the canal using a simulation model based on spatial economics. We find that China, India, Japan, and Europe gain the most from the construction of the canal, besides Thailand. On the other hand, the routes through the Straits of Malacca are largely beneficial to Malaysia, Brunei, and Indonesia, besides Singapore. Thus, it is beneficial for all ASEAN member countries that the Kra Canal and the Straits of Malacca coexist and complement one another.

Keywords: Asia; Thailand; Canals; Economic geography; Transportation; Kra Canal; Malacca Straits; GIS; Simulation model (search for similar items in EconPapers)
JEL-codes: R13 R40 (search for similar items in EconPapers)
Date: 2016-03-01
New Economics Papers: this item is included in nep-cmp, nep-pke and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 568. 2016-03-01

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