This paper develops a framework for evaluating the social returns to infrastructure investments that intensify product …, where unit transport cost measures the intensity of competition (quality of infrastructure). The static and dynamic welfare … effects of infrastructure investment that lowers unit transport cost are analysed, focusing on market selection among …

infrastructure to the transition process. In addition to the direct cost savings, infrastructure investment generates important … indirect effects, or transition impacts. The model shows that, by reducing transaction costs, infrastructure intensifies … model, infrastructure also increases the incentives for low-cost firms to restructure which generates additional efficiency …