Abstract

The article describes the application of an integrated multi-household computable general equilibrium model to the analysis of the impacts on poverty and inequality of the construction of a toll road between Dakar and Thiés in Senegal. Potential effects of the projected highway, such as productivity gains, decreases in transportation costs, and increases in labour supply are simulated. Foster-Greer-Thorbecke and Gini indices were applied to measure changes in poverty and inequality. Some results are counter-intuitive; gains are at times greater in rural areas than in the Dakar region.

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