A Geographical Simulation of Impacts of Vientiane-Hanoi Expressway

Discussion Papers

No.761

by Souknilanh Keola and Satoru Kumagai

April 2019

ABSTRACT

In this paper, we estimated the economic impacts of the proposed and some alternative routes of Vientiane-Hanoi Expressway (VHE), using a computational general equilibrium model based on spatial economics. The estimation results show that overall international positive impact depends more on whether it forms a cross-border expressway connection between the capitals of Vietnam and Thailand. The proximity of the expressway to Laos’s capital is nevertheless critical to economic benefits expected within Laos.

Keywords: Simulation, New Economic Geography, Laos, Vietnam, Thailand

JEL classification: R12, R13, R42

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