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Agglomeration Economies and Transport Connectivity Revisited: A Regional Perspective Based on Evidence from the Caucasus and Central Asian Countries

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dc.contributor.authorIimi, Atsushi
dc.date.accessioned2023-08-02T18:19:35Z
dc.date.available2023-08-02T18:19:35Z
dc.date.issued2023-08-02
dc.description.abstractTransport connectivity is an important determinant of agglomeration economies and urbanization. However, measuring its impacts is a complex task when causality is considered. An important empirical challenge comes from potential endogeneity of infrastructure placement. To deal with the endogeneity problem, first, the paper constructs detailed georeferenced connectivity measurements based on micro shipping data collected over 10 years. Then, the system generalized method of moments regression is applied. Using unique data from the Caucasus and Central Asian countries, the paper estimates the impact of transport connectivity on agglomeration economies. It finds that agglomeration economies are significant and persistent in the region. Thus, the existing firm clusters are likely to continue growing. However, a constraint is also found. Large cities exhibit congestion diseconomies. Finally, the paper shows that the improvement of transport connectivity, especially local market accessibility, has a significant effect on agglomeration. By contrast, no clear evidence to support the impact of improved regional connectivity on agglomeration is observed yet. To take full advantage of agglomeration economies at the regional level, further efforts may be needed, for instance, toward increasing efficiency in transportation and logistics, improving the freight load, and/or reducing the time and costs of border crossing, which add to overall transport costs and times.en
dc.identifierhttp://documents.worldbank.org/curated/en/099712207312313493/IDU04bb3121a060df0486608dad0fc5660332c85
dc.identifier.doi10.1596/1813-9450-10534
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40137
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10534
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectTRANSPORT CONNECTIVITY
dc.subjectFIRM AGGLOMERATION
dc.subjectDYNAMIC PANEL DATA REGRESSION
dc.subjectREGIONAL CONNECTIVITY
dc.subjectLOCAL MARKET ACCESSIBILITY
dc.titleAgglomeration Economies and Transport Connectivity Revisiteden
dc.title.subtitleA Regional Perspective Based on Evidence from the Caucasus and Central Asian Countriesen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleAgglomeration Economies and Transport Connectivity Revisited: A Regional Perspective Based on Evidence from the Caucasus and Central Asian Countries
okr.date.disclosure2023-07-31
okr.date.lastmodified2023-07-31T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099712207312313493/IDU04bb3121a060df0486608dad0fc5660332c85
okr.guid099712207312313493
okr.identifier.docmidIDU-4bb3121a-60df-4866-8dad-fc5660332c85
okr.identifier.doi10.1596/1813-9450-10534
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10534
okr.identifier.externaldocumentum34127245
okr.identifier.internaldocumentum34127245
okr.identifier.reportWPS10534
okr.import.id1368
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099712207312313493/pdf/IDU04bb3121a060df0486608dad0fc5660332c85.pdfen
okr.region.geographicalCentral Asia
okr.topicInternational Economics and Trade::Trade and Transport
okr.topicUrban Development::Transport in Urban Areas
okr.topicRural Development::Rural Roads & Transport
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.unitTransport-So. Africa + Ethiopia (IAET2)
relation.isAuthorOfPublicationeeef1beb-b651-587f-bb16-a47ff170a096
relation.isAuthorOfPublication.latestForDiscoveryeeef1beb-b651-587f-bb16-a47ff170a096
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