Chinese roads in India: The effect of transport infrastructure on economic development

• 成果类型: Article
• 署名作者: Alder, Simon
• 署名单位: Swiss National Bank (SNB); University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2025.104140
• 发表日期: 2025
• 关键词: Transport infrastructure; highways; Network design; TRADE; Economic growth; regional development; INDIA; CHINA; Geographic information system

摘要

India and China followed different strategies in the design of their recent highway networks. India first focused on connecting the four largest economic centers of the country, the Golden Quadrilateral, while China had the explicit strategy of connecting intermediate-sized cities. This paper analyzes the aggregate and distributional effects of transport infrastructure in India based on a general equilibrium trade framework. I compare the effect of the Golden Quadrilateral to a counterfactual network that connects India's intermediate-sized cities. To construct the counterfactual network, I propose a heuristic network design algorithm to maximize aggregate real income net of road construction costs in the general equilibrium model, and I show that the heuristic algorithm provides a good approximation of the optimal network. The results suggest that the actual network led to sizable aggregate gains but unequal effects across regions. The income-maximizing counterfactual network is substantially larger than the actual Indian network, would imply further aggregate gains, and would benefit the lagging regions of India.