This study is primarily concerned with the impacts of the east-west highway in stimulating economic activity in the region. Using freight volume as the surrogate for economic activity, an analysis of past timber commodity flow patterns in the whole country, with particular reference to Pahang and Selangor (linked by a similar east-west road) showed that timber resource exploitation had increased in pahang with the completion of the highway. This generated a greater intensity of economic activity together with the attraction of other new opportunities for growth along this artery. As such, the postulated changes in economic activity in the northern states affected by the east-west highway were studied within an empirical construct, using the Pahang-Selangor situation as model. A gravity model formulation in order to estimate inter-regional flows was developed, and using alternative assumptions in the calibration process it was revealed that distance savings due to the proposed east-west highway cause a change in timber flow patterns for the whole country. Timber exploitation in the northern regions, especially in Kelantan is expected to increase with the highway, together with an increase in timber freight volumes from the forest productive areas in the interior of Ulu Kelantan and Ulu Perak towards new demand points on the east the west coasts. Regional activities like sawmilling and other wood-based industries are predicted to emerge in the northern region. The economic benefits which accrue through multiplier effects in the regional economy based on the expansion of the timber industry, generally covering the general income and employment impacts of the highway project, are examined. It was shown that the regional spatial structure would also be expected to change, through induced developments in infrastructure, land development and agricultural diversification, urbanisation and industrialisation in the northern regional economy. It is suggested that these impacts will be enhanced with the proper strategy of regional development.

  • Corporate Authors:

    Sains Malaysia University, Malaysia

    School of Humanities
    Penang,   Malaysia 
  • Authors:
    • Kuan, K Y
  • Publication Date: 1975-4

Media Info

  • Features: Figures; Tables;
  • Pagination: n.p.

Subject/Index Terms

Filing Info

  • Accession Number: 00307581
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Report/Paper Numbers: Thesis
  • Files: ITRD, TRIS
  • Created Date: Apr 22 1980 12:00AM