The value of transportation accessibility in a least developed country city – The case of Rajshahi City, Bangladesh

Suman K. Mitra and Jean-Daniel M. Saphores

Transportation Research Part A: Policy and Practice, 2016, vol. 89, issue C, 184-200

Abstract: Little appears to be known about the capitalization of transportation accessibility in South Asian housing markets, which typically differ from those of industrialized countries. This study starts addressing this gap by providing empirical evidence about the nature and the magnitude of the value of accessibility as reflected by residential rents in Rajshahi City, Bangladesh. Results of our SARAR spatial hedonic model estimated on 526 observations from a random sample collected via in-person interviews indicate that the rent of a multi-unit dwelling decreases by 0.0239% for every 1% increase in network access distance to the nearest major road. Moreover, proximity (within 400m) to a primary school and to a healthcare facility commands rent premiums of respectively 93.55BDT ($1.40) and 109.45BDT ($1.64). Surprisingly, whether access roads are paved or not does not statistically impact rents, probably because of the dominance of walking, rickshaws use, and biking, combined with the rarity of personal cars. Likewise, proximity to bus stops and to train stations is not reflected in rents of multi-family dwellings, likely because buses and trains in Rajshahi City only provide regional and national service. Differences in estimates of our spatial models between maximum likelihood (ML) and generalized spatial two-stage-least-squares illustrate the danger of relying on ML in the presence of heteroskedasticity. These results should be useful for planning transportation infrastructure funding measures in least developed country cities like Rajshahi City.

Keywords: Spatial hedonic model; SARAR; Transportation accessibility; Least-developed country; Bangladesh (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0965856416303809
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:89:y:2016:i:c:p:184-200

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tra.2016.05.002

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().