This paper analyzes the economic impacts of the Second Mekong International Bridge linking Mukdahan Province in Thailand with Savannakhet Province in the Lao People's Democratic Republic using a general equilibrium model. The authors find that the reductions in transport costs increase trade volumes and incomes in both regions, and that these benefits increase significantly over time. There is no evidence to support the common presumption that the benefits from cross-border infrastructure projects occur only, or overwhelmingly, in the richer region.
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