Abstract
Lack of infrastructure is an inhibitor to trade in the SEMC. Bringing the transport infrastructure of this region up to standards comparable with countries of a similar per capita GDP will be costly but worthwhile. The annual investment cost would be between at least 0.9 % of GDP and up to 4.5 % of GDP. As a result, the trade balance of the SEMC would improve between 5.4 % and 17.2 %, although some countries would continue to have a deficit. The benefit ratio between the increase in GDP and the cost of transport investment would vary between 3 and 8, an indication of the high return on the investment.
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References
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Carruthers, R. (2015). Transport Infrastructure. In: Ayadi, R., Dabrowski, M., De Wulf, L. (eds) Economic and Social Development of the Southern and Eastern Mediterranean Countries. Springer, Cham. https://doi.org/10.1007/978-3-319-11122-3_6
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DOI: https://doi.org/10.1007/978-3-319-11122-3_6
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