The Effects of Roads on Trade and Migration: Evidence from a Planned Capital City
Oliveira, Jaqueline Morten, Melanie
The Effects of Roads on Trade and Migration: Evidence from a Planned Capital City - American Economic Journal: Applied Economics 2024 - 389-421
A large body of literature studies how infrastructure facilitates trade. We ask whether infrastructure also facilitates migration. Using a general equilibrium trade model and rich spatial data, we study the impact of a large, plausibly exogenous shock to highways in Brazil on both goods and labor markets. We find the highway system increased welfare by 2.8 percent, of which 76 percent was due to reduced trade costs and 24 percent to reduced migration costs. An implication of costly migration is spatial heterogeneity in benefits: the range of welfare improvement is 1 to 15 percent, as opposed to uniform gains with perfect mobility.
1945-7782
Housing
Infrastructure, Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration
National Government Expenditures and Related Policies: Infrastructures
Regional Labor Markets
Economics
Population
The Effects of Roads on Trade and Migration: Evidence from a Planned Capital City - American Economic Journal: Applied Economics 2024 - 389-421
A large body of literature studies how infrastructure facilitates trade. We ask whether infrastructure also facilitates migration. Using a general equilibrium trade model and rich spatial data, we study the impact of a large, plausibly exogenous shock to highways in Brazil on both goods and labor markets. We find the highway system increased welfare by 2.8 percent, of which 76 percent was due to reduced trade costs and 24 percent to reduced migration costs. An implication of costly migration is spatial heterogeneity in benefits: the range of welfare improvement is 1 to 15 percent, as opposed to uniform gains with perfect mobility.
1945-7782
Housing
Infrastructure, Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration
National Government Expenditures and Related Policies: Infrastructures
Regional Labor Markets
Economics
Population