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Croatian Journal of forest Engineering
ISSN: 18455719 18489672 Publisher: Croatia University of Zagreb, Faculty of Forestry

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Road Network Upgrading and Overland Trade Expansion in Sub-Saharan Africa
Authors: --- ---
Year: 2006 Publisher: Washington, D.C., The World Bank,

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Recent research suggests that isolation from regional and international markets has contributed significantly to poverty in many Sub-Saharan African countries. Numerous empirical studies identify poor transport infrastructure and border restrictions as significant deterrents to trade expansion. In response, the African Development Bank has proposed an integrated network of functional roads for the subcontinent. Drawing on new econometric results, the authors quantify the trade-expansion potential and costs of such a network. They use spatial network analysis techniques to identify a network of primary roads connecting all Sub-Saharan capitals and other cities with populations over 500,000. The authors estimate current overland trade flows in the network using econometrically-estimated gravity model parameters, road transport quality indicators, actual road distances, and estimates of economic scale for cities in the network. Then they simulate the effect of feasible continental upgrading by setting network transport quality at a level that is functional, but less highly developed than existing roads in countries like South Africa and Botswana. The authors assess the costs of upgrading with econometric evidence from a large World Bank database of road project costs in Africa. Using a standard approach to forecast error estimation, they derive a range of potential benefits and costs. Their baseline results indicate that continental network upgrading would expand overland trade by about USD 250 billion over 15 years, with major direct and indirect benefits for the rural poor. Financing the program would require about USD 20 billion for initial upgrading and USD 1 billion annually for maintenance. The authors conclude with a discussion of supporting institutional arrangements and the potential cost of implementing them.


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Road Infrastructure in Europe and Central Asia : Does Network Quality Affect Trade ?
Authors: ---
Year: 2007 Publisher: Washington, D.C., The World Bank,

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The authors present a new database of minimum distance road routes connecting 138 cities in 27 countries across Europe and Central Asia. They use it to show that improved road network quality is robustly associated with higher intraregional trade flows. Gravity model simulations suggest that an ambitious but feasible road upgrade could increase trade by 50 percent over baseline, exceeding the expected gains from tariff reductions or trade facilitation programs of comparable scope. Cross-country spillovers due to overland transit are important: total intraregional trade could be increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.


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East Africa's Infrastructure : A Regional Perspective
Authors: ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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Sound infrastructure is critical for growth in East Africa. During 1995-2005, improvements in infrastructure boosted growth by one percentage point per year, due largely to wider access to information and communication technologies (ICTs). Although power infrastructure sapped growth in other regions of Africa, it contributed 0.2 percentage points per year growth in East Africa. If East Africa's infrastructure could be improved to the level of the strongest performing country in Africa (Mauritius), regional growth performance would be boosted by some six percentage points, with power making the strongest contribution. East Africa's infrastructure ranks behind that of southern and western Africa across a range of indicators, though in terms of access to improved sources of water and sanitation and Internet density, it is comparable with or superior to the subcontinent's leader, southern Africa. By contrast, density of fixed-line telephones, power generation capacity, and access to electricity remain extremely low, though utility performance is improving through regional power trades. The road network is relatively good, although with some lengths of poor-quality or unpaved roads. Surface transport is challenged by border crossings, port delays, slow travel, limited railways, and trade logistics, but the region has a relatively mature and competitive trucking industry. Air transport benefits from a strong hub-and-spoke structure but has made little progress toward market liberalization. Of the seven countries in the region, four are landlocked, two have populations of fewer than 10 million people, and two have an annual gross domestic product of less than USD 10 billion. The difficult economic geography of East Africa makes a regional approach to infrastructure development necessary to achieve further improvement.


Book
Road Infrastructure in Europe and Central Asia : Does Network Quality Affect Trade ?
Authors: ---
Year: 2007 Publisher: Washington, D.C., The World Bank,

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Abstract

The authors present a new database of minimum distance road routes connecting 138 cities in 27 countries across Europe and Central Asia. They use it to show that improved road network quality is robustly associated with higher intraregional trade flows. Gravity model simulations suggest that an ambitious but feasible road upgrade could increase trade by 50 percent over baseline, exceeding the expected gains from tariff reductions or trade facilitation programs of comparable scope. Cross-country spillovers due to overland transit are important: total intraregional trade could be increased by 30 percent by upgrading roads in just three countries-Albania, Hungary, and Romania.


Book
East Africa's Infrastructure : A Regional Perspective
Authors: ---
Year: 2011 Publisher: Washington, D.C., The World Bank,

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Abstract

Sound infrastructure is critical for growth in East Africa. During 1995-2005, improvements in infrastructure boosted growth by one percentage point per year, due largely to wider access to information and communication technologies (ICTs). Although power infrastructure sapped growth in other regions of Africa, it contributed 0.2 percentage points per year growth in East Africa. If East Africa's infrastructure could be improved to the level of the strongest performing country in Africa (Mauritius), regional growth performance would be boosted by some six percentage points, with power making the strongest contribution. East Africa's infrastructure ranks behind that of southern and western Africa across a range of indicators, though in terms of access to improved sources of water and sanitation and Internet density, it is comparable with or superior to the subcontinent's leader, southern Africa. By contrast, density of fixed-line telephones, power generation capacity, and access to electricity remain extremely low, though utility performance is improving through regional power trades. The road network is relatively good, although with some lengths of poor-quality or unpaved roads. Surface transport is challenged by border crossings, port delays, slow travel, limited railways, and trade logistics, but the region has a relatively mature and competitive trucking industry. Air transport benefits from a strong hub-and-spoke structure but has made little progress toward market liberalization. Of the seven countries in the region, four are landlocked, two have populations of fewer than 10 million people, and two have an annual gross domestic product of less than USD 10 billion. The difficult economic geography of East Africa makes a regional approach to infrastructure development necessary to achieve further improvement.


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Determinants of Motorization and Road Provision
Authors: ---
Year: 1999 Publisher: Washington, D.C., The World Bank,

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January 1999 - National and urban motor vehicle ownership increases at about the same rate as income, whereas road length increases with income mainly at the national level. So, urban congestion grows with income. Controlling vehicle fleet growth and use would require high taxes that increase faster than income - or there could be congestion tolls. Ingram and Liu survey past trends in vehicle ownership and road network expansion to analyze determinants of their growth at the national and urban level. Surprisingly, they find that: Nationally, income is a major determinant of both vehicle ownership and road length; Nationally, paved road length and vehicle ownership has been increasing about as fast as income, while total road length is increasing less rapidly than income; In urban areas vehicle ownership increases as fast as income while road length increases very slowly with income. Because national paved road networks are expanding about as fast as national motor vehicle fleets, national congestion is unlikely to be worsening. But because urban road length is growing much more slowly than the number of urban motor vehicles, urban congestion is rising with income over time. Increased urban congestion is stimulating decentralized urban growth. Income elasticities are greater than price elasticities in absolute terms, for both vehicle ownership and use - an important finding because prices are often used as an instrument to control motor vehicle ownership and use. If price elasticities are half as large as income elasticities, prices would have to grow twice as fast as incomes to stabilize vehicle ownership. Breaking the link between income growth, rising congestion, and urban decentralization will be difficult: Restraining auto ownership in urban areas requires high tax rates, and increasing the supply of urban roads is costly. Elasticity estimates vary, but a good point estimate for the income elasticity of fleet growth is 1. This means country motor vehicle fleets grow in proportion to country incomes. More than half the world's annual increase in motor vehicles is likely to occur in high-income countries until 2025 (assuming GNP growth of 3 percent in high-income countries, 5 percent in low- and middle-income countries). The motor vehicle fleet in low- and middle-income countries is not projected to exceed that in high-income countries until after 2050. Carbon dioxide emissions are likely to be distributed similarly. This paper-a joint product of the Research Advisory Staff and the Transport Division, Transport, Water, and Urban Development Department-is part of a research project on motorization and roads. The authors may be contacted at gingram@worldbank.org or zliu@worldbank.org.


Book
Road Network Upgrading and Overland Trade Expansion in Sub-Saharan Africa
Authors: --- ---
Year: 2006 Publisher: Washington, D.C., The World Bank,

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Abstract

Recent research suggests that isolation from regional and international markets has contributed significantly to poverty in many Sub-Saharan African countries. Numerous empirical studies identify poor transport infrastructure and border restrictions as significant deterrents to trade expansion. In response, the African Development Bank has proposed an integrated network of functional roads for the subcontinent. Drawing on new econometric results, the authors quantify the trade-expansion potential and costs of such a network. They use spatial network analysis techniques to identify a network of primary roads connecting all Sub-Saharan capitals and other cities with populations over 500,000. The authors estimate current overland trade flows in the network using econometrically-estimated gravity model parameters, road transport quality indicators, actual road distances, and estimates of economic scale for cities in the network. Then they simulate the effect of feasible continental upgrading by setting network transport quality at a level that is functional, but less highly developed than existing roads in countries like South Africa and Botswana. The authors assess the costs of upgrading with econometric evidence from a large World Bank database of road project costs in Africa. Using a standard approach to forecast error estimation, they derive a range of potential benefits and costs. Their baseline results indicate that continental network upgrading would expand overland trade by about USD 250 billion over 15 years, with major direct and indirect benefits for the rural poor. Financing the program would require about USD 20 billion for initial upgrading and USD 1 billion annually for maintenance. The authors conclude with a discussion of supporting institutional arrangements and the potential cost of implementing them.


Book
Infrastructure and Economic Growth in the Middle East and North Africa
Authors: --- ---
Year: 2009 Publisher: Washington, D.C., The World Bank,

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This paper analyzes the impact of infrastructure on growth of total factor productivity and per capita income, using both growth accounting techniques and cross-country growth regressions. The two econometric techniques yield some consistent and some different results. Regressions based in the growth accounting framework suggest that electricity production helps explain cross-country differences in total factor productivity growth in the Middle East and North Africa region. Growth regressions support that conclusion, while also stressing an effect of telecommunications infrastructure. Finally, growth regressions also indicate quite consistently that the returns to infrastructure have been lower in the Middle East and North Africa region than in developing countries as a whole.


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Revising the Roads Investment Strategy in Rural Areas : An Application for Uganda
Authors: --- --- ---
Year: 2009 Publisher: Washington, D.C., The World Bank,

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Based on extensive data collection in Uganda, this paper demonstrates that the rural access index, as defined today, should not be a government objective because the benefit of such investment is minimal, whereas achieving rural accessibility at less than 2 kilometers would require massive investments that are not sustainable. Taking into account the fact that plot size is limited on average to less than 1 hectare, a farmer's transport requirement is usually minimal and does not necessarily involve massive investments in infrastructure. This is because most farmers cannot fully load a truck or pay for this service and, even if productivity were to increase significantly, the production threshold would not be reached by most individual farmers. Therefore, in terms of public policy, maintenance of the existing rural roads rather than opening new roads should be given priority; the district feeder road allocation maintenance formula should be revised to take into account economic potential and, finally, policy makers should devote their attention to innovative marketing models from other countries where smallholder loads are consolidated through private-based consolidators.

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