Economy Wide Impact of Investment in Road Infrastructure in Ethiopia: A Recursive Dynamic Computable General Equilibrium Approach
| dc.contributor.advisor | Ferede, Tadelle (PhD) | |
| dc.contributor.author | Bekele, Semen | |
| dc.date.accessioned | 2018-11-16T08:35:32Z | |
| dc.date.accessioned | 2023-11-04T10:27:55Z | |
| dc.date.available | 2018-11-16T08:35:32Z | |
| dc.date.available | 2023-11-04T10:27:55Z | |
| dc.date.issued | 2015-06 | |
| dc.description.abstract | In current periods Ethiopia has been implementing huge investment in road infrastructure across the country. Despite the significant improvements in road length, accessibility and quality of roads, few researches were conducted on the impacts of investments in road infrastructure on economic growth, household income and consumption growth. These researches were conducted following the partial equilibrium or econometric techniques that lacks to address the interrelated effect in addition to the limitation that some of these studies were done for a specific road sector development programs and or specific areas In this study an attempt has been made to examine economy wide impact of investment in road infrastructure using a recursive dynamic CGE model. The study used an updated version of the 2005/06 EDRI Social Accounting Matrix. Six simulations were considered. While the first three simulations were based on the existing and past Ethiopia policy which considered the average road density growth in the PASDEP period, the average density growth required to reach the middle income level and the average road density growth in the GTP period, the last three simulation were considered as robustness test. Simulations with the CGE model confirm that with increasing availability of road infrastructure, there is a positive growth in the macroeconomic and sectorial indicators (Real GDP, absorption, investment, private consumption, real export, and real import) though the magnitude of the effects is relatively small compared with the high investment costs and the changes varies among the different indicators. Similarly the demand for labor, capital, land and livestock increases with increasing availability of road infrastructure. Income from livestock and land responds better compared to labor and capital as road investment increases. Welfare, measured as real consumption, increases on average and at the disaggregate level for all households. In this case the rural poor benefited more from road investment in terms of earning better income and consumption. Road infrastructure affects the production sectors differently. Manufacturing and capital-intensive activities benefit, while agricultural sectors are less favored, given the relative increase in wages. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/14346 | |
| dc.language.iso | en | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | investment in road infrastructure in Ethiopia | en_US |
| dc.title | Economy Wide Impact of Investment in Road Infrastructure in Ethiopia: A Recursive Dynamic Computable General Equilibrium Approach | en_US |
| dc.type | Thesis | en_US |