No.794 The Impact of an International Bridge on Households: Evidence from Household Panel Data in Thailand
This paper empirically investigates the impact of an international bridge being constructed between Thailand and Laos on household behavior in Thailand. Our empirical results suggest that the establishment of an international bridge boosted the growth in Thailand of the industry in which the country had a comparative advantage, i.e., agriculture. Therefore, this industry enjoyed positive effects from the bridge’s construction. Specifically, we discovered that income, especially farm income, rose in households headed by a male or a young person. Furthermore, the bridge’s construction also increased the amount of agricultural land, the number of agricultural workers, and household debt ratios. On the other hand, income decreased in households with a female or an elderly head. To address possible endogeneity issues on the choice of the bridge’s location, we restricted this study to specific provinces. We also controlled for several confounding factors and conducted placebo tests to confirm the robustness of our results.
Keywords: International bridge, Trade liberalization, Household
JEL classification: F10, H54, G51
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.