An application of an integrated transport network-multiregional CGE model: A framework for the economic analysis of highway projects

Euijune Kim, Geoffrey J.D. Hewings, Chowoon Hong

Research output: Contribution to journalArticlepeer-review

Abstract

This paper develops a framework for the economic analysis of highway projects that is then used to estimate the dynamic economic effects of a highway project on the economic growth and the regional disparity in Korea. The framework is composed of a transport model and a multiregional Computable General Equilibrium (CGE) model. The transport model measures a change in interregional shortest distances and the accessibility due to the highway project. The CGE model estimates the spatial economic effects of the project on GDP, the price, exports, and the regional distribution of wages and population. The simulation allows policy makers to determine which highway development deserves the priority for investment, based on consideration of economic growth and regional economic equity in the long run. The simulation found that all the highway projects have positive effects on GDP and export growth as well as regional equity in terms of wage and population.

Original languageEnglish (US)
Pages (from-to)235-258
Number of pages24
JournalEconomic Systems Research
Volume16
Issue number3
DOIs
StatePublished - Sep 2004

Keywords

  • CGE model
  • Income distribution
  • Regional inequality
  • Regional investment policy

ASJC Scopus subject areas

  • Economics and Econometrics

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