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1、ChineseRoadsinIndia:TheEffectofTransportInfrastructureonEconomicDevelopmentSimonAlderyUniversityofZurichJobMarketPaperzJanuary28,2014AbstractThispaperusesageneralequilibriumframeworkasinEatonandKortum(2002)toestimatethecontributionoftransportinfrastructuretoregionaldevelo
2、pment.IapplytheanalysistoIndia,acountrywithanotoriouslyweakandcongestedtransportationinfrastructure.IfirstanalyzethedevelopmenteffectsofarecentIndianhighwayprojectthatimprovedconnec-tionsbetweenthefourlargesteconomiccenters.Iestimatetheeffectofthisnewinfrastruc-tureonincome
3、acrossdistrictsusingsatellitedataonnightlights.TheresultsshowaggregatenetgainsfromtheIndianhighwayproject,butveryunequaleffectsacrossregions.Chinahasfollowedadifferenthighwayconstructionstrategyandhasexperiencedmoresignifi-cantconvergenceacrossregionsthanIndia.Ithereforeuse
4、themodeltogaugetheeffectsofacounterfactualhighwaynetworkforIndiathatreplicatestheChinesestrategyofconnect-ingintermediate-sizedcities.IfindthatthiscounterfactualnetworkwouldhavesignificantlybenefitedthelaggingregionsofIndia,inducingmoreequalregionaldevelopment.However,theeffe
5、ctsonaveragenationalgrowthwouldhavebeenmodest.Ialsoconstructadditionalcounterfactualsanddiscusstheireffectsoneconomicdevelopment.JELCodes:F11,F14,F15,O11,O18,R12,R13Keywords:TransportInfrastructure,EconomicGrowth,RegionalDevelopment,Trade,India,China,GeographicInformationS
6、ystem,SatelliteData,Luminosity.IwouldliketothankFabrizioZilibottiforhissupportduringthisproject.IalsothankSimeonD.Alder,George-MariosAngeletos,MarcoBassetto,TimoBoppart,FilippoBrutti,MariusBrulhart,AdrienBussy,GuidoCozzi,GregoryCrawford,MariacristinaDeNardi,DavidDorn,¨Pet
7、erKondor,MichaelKonig,RafaelLalive,SergiJim¨enez-Mart´´ın,OmarLicandro,AndreasMuller,AlessandroPavan,MichelleRendall,Jos¨e-V´´ıctorR´ıos-Rull,DominicRohner,EstebanRossi-Hansberg,LinShao,KjetilStoresletten,ViktorTsyrennikov,RainerWinkelmann,ChristophWinter,GabrielZucman,Jos
8、efZweimuller,andseminarparticipantsattheUniversityofZurich,¨theUniversityofLausanne,andth
