Discussion Papers

No.761 A Geographical Simulation of Impacts of Vientiane-Hanoi Expressway

by Souknilanh Keola and Satoru Kumagai

April 2019


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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