Re-examining the Role of Transport Infrastructure in Trade, Regional Growth and Governance: Comparing the Greater Mekong Subregion (GMS) and Central Eastern Europe (CEE)

Abstract

The main objective of this article is to question the hypothesis of the role of transport infrastructures in regional economic growth by comparing Central Eastern Europe (supported by the EU structural and cohesion funds) and the Greater Mekong Subregion (mainly supported by the “economic corridors” of the ADB). Three main components of trade efficiency are scrutinized and compared: (1) the historical development of trade agreements, (2) the supra-national (regional) capacity of trade regulation, and (3) the micro level of governance between the different actors involved in trade. The comparison between CEE and the GMS is all the more warranted because of two paradoxes that need to be explained: The first one results from the existing link between transport and growth in the case of the GMS, and the lack of a link in the case of CEE. The second paradox insists on the fact that despite their very different institutional frameworks, both subregions continue to face similar challenges concerning the implementation of trade agreements and the exchange of facilities at the local level – pointing towards the issue of governance.

Road improvement enhances smallholder productivity and reduces forest encroachment in Ghana

“…Poor communications are obstacles to technology uptake, training and extension of education and these factors combine to limit farmer innovation (Badu et al, 2013). In Africa, roads are the main means through which farm products are transported to the market (Angmor, 2012;Bafoil & Ruiwen, 2010). Farm size and the integration of farms into the cash economy are influenced by roads that connect farmers to markets (Masters et al, 2013).…”

“…1: Confusion/Error Matrix for 1986, and 2015 image classification ...... Table 5. xiii (Badu et al, 2013;Bafoil & Ruiwen, 2010;Marko et al, 2011;McIntire, 2014). In developing countries, movement of people, goods, and service are mainly made by road.…”

Impact of Regional Road Infrastructure Improvement on Intra‐Regional Trade in ECOWAS

“…Studies have examined the importance and/or role of infrastructure to economic development of Africa (Calderón and Servén, ; Ajakaiye and Ncube, ). Other studies have examined the role of (regional) infrastructure, especially good road networks, in promoting intra‐regional trade, economic development, cooperation and integration (Buys et al ., ; Ndulu, ; Mbekeani, ; Bafoil and Ruiwen, ; AfDB, ; UNCTAD, ). Mbekeani () conducted a comprehensive review of global experiences on the role of infrastructure in promoting trade and regional economic integration and provided lessons for Africa.…”

Is the Public Private Partnership Model the Right Vehicle for Public Infrastructure Delivery in Developing Countries?

“…Although a lot of research on the relationship between infrastructure and development outcome have been undertaken, the link between these two is still a topic for debate among economists (Snieska and Simkunaite, 2009). A number of empirical studies, such as those conducted by Rives and Heaney (1995), Bafoil and Ruiwen (2010), Kim (2006), Munnell (1992), Yoshino and Nakahigashi (2000), and Boopen (2006) found a strong link between infrastructure availability and economic development; hence infrastructure delivery is a high priority for governments. In the past, public infrastructure delivery was the sole responsibility of the public sector; however, this has now changed as infrastructure delivery is also provided by the private sector, mainly under the PPP arrangement.…”