Family Farming is the predominant form of agriculture. It represents the main source of income in rural areas and produces majority of agricultural pr...Read more
Energy & Enviroment
The ISET Policy Institute has recently completed a WB-commissioned study to assess the economy-wide benefits of investment in the East West Highway (EWH). We developed a computable general equilibrium (CGE) model simulating the indirect benefits associated with the completion of the upgraded road corridor and related savings in transportation costs (such as reduction in vehicle operating costs and time). According to our estimations, the EWH investment program will have an overall positive impact on key macroeconomic and welfare variables over the medium and long-term. Real GDP is assessed to increase by 1.5 percent over the medium-term horizon and by 4.2 percent over a long-term horizon. Both exports and imports are expected to expand in the long-run by 4.7 and 1.6 percent, respectively. Sensitivity analysis suggests that our results are robust to changes in the modeling parameters.