The distributional impacts of transportation networks in China

• Main Authors: MA, Lin, YANG, Tang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: regional trade; migration; welfare; economic geography; Asian Studies; Industrial Organization; Transportation
• Online Access: https://ink.library.smu.edu.sg/soe_research/2625; https://ink.library.smu.edu.sg/context/soe_research/article/3624/viewcontent/The_Distributional_Impacts_of_Transportation_Networks_in_China__1_.pdf
• Institution: Singapore Management University

This paper evaluates the distributional impacts of transportation networks in China.We show that the quality of roads and railroads vary substantially over time and space, and ignoring these variations biases the estimates of travel time. To account for quality differences, we construct a new panel dataset and approximate quality using the design speed of roads and railroads that varies by vintage, class, and terrain at the pixel level. We then build a dynamic spatial general equilibrium model that allows for multiple modes and routes of transportation and forward-looking migration decision.We find aggregate welfare gain and less spatial income inequality led by expanding transportation network.