Abstract

Agriculture remains an important economic sector in Africa, employing a large share of the labor force and earning foreign exchange. Among others, transport connectivity has long been a crucial constraint in Africa. In theory, railways have a particularly important role to play in shipping freight and passengers at low cost. However, most African railways were in virtual bankruptcy by the 1990s. Using a large sample of data comprised of more than 190,000 households over eight years in Ethiopia, the paper estimates the impacts of rail transport on agricultural production. Methodologically, the paper takes advantage of the historical event that a major rail line connecting the country to the regional hub, the Port of Djibouti, was abandoned in the 2000s. With spatially highly disaggregated fixed effects and instrumental variables incorporated, an agricultural production function is estimated. The elasticity with respect to port connectivity is estimated at 0.276. The use of fertilizer is also found to increase with transport cost reduction, supporting the fact that a large amount of fertilizer is imported to Ethiopia. Document type: Book

Abstract

This paper studies the impact of transport infrastructure projects of the Belt and Road Initiative on shipment times and trade costs. Based on a new data on completed and planned Belt and Road transport projects, Geographic Information System analysis is used to estimate shipment times before and after the Belt and Road Initiative. Two sets of data are computed to address different research questions: a global database based on an analysis of 1,000 cities in 191 countries and 47 sectors and a regional database that focuses on more granular information (1,818 cities) for Belt and Road economies only. The paper uses sectoral estimates of “value of time” to transform changes in shipment times into changes in ad valorem trade costs at the country-sector level. The findings show that the Belt and Road Initiative will significantly reduce shipment times and trade costs. For the world, the average reduction in shipment time will range between 1.2 and 2.5 percent, leading to reduction of aggregate trade costs between 1.1 and 2.2 percent. For Belt and Road economies, the change in shipment times and trade costs will range between 1.7 and 3.2 percent and 1.5 and 2.8 percent, respectively. Belt and Road economies located along the corridors where projects are built experience the largest gains. Shipment times along these corridors decline by up to 11.9 percent and trade costs by up to 10.2 percent. The paper also shows that these effects are magnified by policy reforms that reduce border delays and improve corridor management. Document type: Article

Abstract

This study investigates the role of social networks in aligning the incentives of economic agents in settings with incomplete contracts. We study the New York City taxi industry where taxis are often leased and lessee-drivers have worse driving outcomes than owner-drivers as a result of a moral hazard associated with incomplete leasing contracts. Using instrumental variables and fixed-effects analyses, we find that: (1) drivers leasing from members of their country-of-birth community exhibit significantly reduced effects of moral hazard; (2) network effects appear to operate primarily via social sanctions; and (3) network benefits can help to explain the organization of the industry in terms of which drivers and owners form business relationships.

Abstract

Resumo: Este artigo estima as perdas econômicas associadas a problemas de mobilidade urbana no Brasil por meio do cálculo da produção média desperdiçada em função do tempo de deslocamento ao trabalho, usando dados do Censo Demográfico de 2010. Os resultados são apresentados em valores absolutos e relativos (% do PIB) para estados, regiões metropolitanas (RMs) e municípios do Brasil, com ênfase na diferença de tempo gasto nas RMs e municípios do interior de cada estado. Os valores encontrados foram significativos, e a perda total estimada é de 1,8% do PIB. Caso o tempo de deslocamento nas RMs fosse igual ao dos municípios do interior, haveria uma redução de 27,6% (R$26,7 bilhões) das perdas totais, indicando que melhorias na mobilidade urbana podem trazer grandes retornos sociais. Abstract: This article estimates economic losses associated with urban mobility problems in Brazil by calculating the average production loss due to commuting time to work, using data from the 2010 Demographic Census. The results are presented in absolute and relative values (% of GDP) for States, Metropolitan Regions (RMs) and municipalities in Brazil, with emphasis on the difference in time spent in RMs and municipalities and the interior of each state. The results were significant, and the total estimated loss is 1.8% of GDP. If the commuting time in the RMs were equal to those of municipalities in the interior, there would be a reduction of 27.6% (R$ 26.7 billion) of total losses, suggesting that improvements in urban mobility can bring great social returns. Document type: Article

Abstract

The priorities assessment for the planned construction of high-speed rail/HSR in the Czech Republic in terms of impacts on internal and external integration is a though-provoking topic not only from the technical and economic, but also from the social and geographical point of view. Its primary basis is the application of the gravity model, according to which the planned route C Prague-Wien has the most significant potential in passenger transport. Then following routes are A Prague-Berlin, B Prague-München, and D Brno-Katowice. Subsequently, the likely impacts generated by a significant improvement in the quality parameters and hence the competitive position of rail transport were assessed, including the potential for shifting part of the demand from the road and air transport to HSR. Overall, however, it can be stated that the potential impacts of the HSR on the growth of passenger transport in the Czech Republic will not be essential. To perceive the regional impacts of HSR construction, analyses of selected indicators (population density per km"jats:sup"2"/jats:sup", GDP per capita, unemployment rate) by NUTS 3 regions for the period 2007-2017 were also carried out. From the strategic point of view, the research results did not confirm that the planned construction of the HSR primarily stimulates convergence tendencies in regional development as the main priority of EU regional policy. Rather, it seems more likely that the HSR will stimulate the extraction of economic activity from “rural” regions in favour of metropolitan regions. Document type: Article