We develop an interregional computable general equilibrium model to help
assess the ex ante impact of transportation infrastructure policies in Egypt. The model is
integrated with a GIS network. We illustrate the analytical capabilities of the model by
looking at the domestic integration of the country. Improvements of transportation costs
among Egyptian governorates and of their links to the broader world economy are
considered in stylized simulations. The results provide quantitative and qualitative
insights (general equilibrium effects) into trade-offs commonly faced by policy makers
when dealing with transportation infrastructure projects in a spatial context. In the case
of Egypt, there seems to be an important trade-off between efficiency and regional
equity: projects that produce potential higher impacts on national GDP also tend to
contribute more to regional concentration.