Competition and the Welfare Gains from Transportation Infrastructure: Evidence from the Golden Quadrilateral of India

Jose Asturias, Roberto Ramos and Manuel García-Santana
Authors registered in the RePEc Author Service: Manuel Garcia-Santana

No 907, Working Papers from Barcelona School of Economics

Abstract: A significant amount of resources is spent every year on the improvement of transportation infrastructure in developing countries. In this paper, we investigate the effects of one such large project, the Golden Quadrilateral in India, on the income and allocative efficiency of the economy. We do so using a quantitative model of internal trade with variable markups. We find real income gains of 2.71% in the aggregate and that allocative efficiency accounts for 8% of these gains. The importance of allocative efficiency varies greatly across states, and can account for up to 19% of the overall gains. Thus, allocative efficiency can play an important role in determining both the size and distribution of gains from new infrastructure.

Keywords: infrastructure; allocative efficiency; internal trade (search for similar items in EconPapers)
JEL-codes: F1 O4 (search for similar items in EconPapers)
Date: 2016-05
New Economics Papers: this item is included in nep-bec and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Journal Article: Competition and the Welfare Gains from Transportation Infrastructure: Evidence from the Golden Quadrilateral of India (2019)
Working Paper: Competition and the welfare gains from transportation infrastructure: evidence from the golden quadrilateral of India (2018)
Working Paper: Competition and the welfare gains from transportation infrastructure: Evidence from the Golden Quadrilateral of India (2016)
Working Paper: Competition and the welfare gains from transportation infrastructure: Evidence from the Golden Quadrilateral of India (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:907

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