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The benefits of rural roads. Enhancing income opportunities for the rural poor

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Abstract

Most studies have measured the benefits of rehabilitated rural roads by focusing on reductions in monetary or time costs needed to access product and factor markets or key public social services. This paper complements these studies by evaluating their impact on key welfare indicators such as income or consumption. Looking at rural households living in some of the poorest districts of Peru, this study compares (using propensity score matching techniques) households located near rehabilitated roads to suitable controls. Results show that rehabilitated road accessibility can be related to changes in income sources, as the rehabilitated road enhances non-agricultural income opportunities, especially from wage-employment sources. The study also finds that income expansion is not been matched by an equivalent consumption increase; apparently because the additional income is allocated to savings, through increments in livestock, most likely because road quality improvement is being perceived as transitory.

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Bibliographic Info

Paper provided by Grupo de Análisis para el Desarrollo (GRADE) in its series Documentos de Investigación with number dt40b.

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Length: 52 pages
Date of creation: Mar 2003
Date of revision:
Handle: RePEc:gad:doctra:dt40b

Note: Documento de trabajo, 40-I
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Keywords: Carreteras; Ingresos de hogares; Empleo; Zonas rurales; Roads; Household income; Employment Rural areas; Peru;

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Cited by:
  1. Antoci, Angelo & Russu, Paolo & Ticci, Elisa, 2009. "Distributive impact of structural change: Does environmental degradation matter?," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 266-278, December.
  2. Laszlo, Sonia, 2008. "Education, Labor Supply, and Market Development in Rural Peru," World Development, Elsevier, vol. 36(11), pages 2421-2439, November.
  3. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
  4. Zezza, Alberto & Winters, Paul C. & Davis, Benjamin & Carletto, Calogero & Covarrubias, Katia & Quinones, Esteban & Stamoulis, Kostas G. & Di Giuseppe, Stefania, 2007. "Rural Household Access to Assets and Agrarian Institutions: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7925, European Association of Agricultural Economists.
  5. Wiig, Henrik, 2003. "The Productivity of Social Capital - An Econometric Analysis of 49 Peruvian Highland Communities," Memorandum 27/2003, Oslo University, Department of Economics.
  6. Schürenberg-Frosch, Hannah, 2012. "Determinants of transport costs: Are they uniform across countries?," Economics Discussion Papers 2012-54, Kiel Institute for the World Economy.
  7. World Bank, 2007. "China's Expressways : Connecting People and Markets for Equitable Development," World Bank Other Operational Studies 7933, The World Bank.
  8. Christian K.M. Kingombe & Salvatore di Falco, 2012. "Labour Market and Fiscal Policy," IHEID Working Papers 04-2012, Economics Section, The Graduate Institute of International Studies, revised 28 Feb 2012.
  9. World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Other Operational Studies 8172, The World Bank.
  10. Schürenberg-Frosch, Hannah, 2011. "One model fits all? Determinants of transport costs across sectors and country groups," Center for European, Governance and Economic Development Research Discussion Papers 122, University of Goettingen, Department of Economics.
  11. World Bank, 2008. "Improving the Management of Secondary and Tertiary Roads in the South East Europe Countries," World Bank Other Operational Studies 7786, The World Bank.
  12. Qin, Yu & Zhang, Xiaobo, 2012. "The road to specialization in agricultural production:: Evidence from rural China," IFPRI discussion papers 1221, International Food Policy Research Institute (IFPRI).
  13. Calderon, Cesar & Serven, Luis, 2008. "Infrastructure and economic development in Sub-Saharan Africa," Policy Research Working Paper Series 4712, The World Bank.
  14. World Bank, 2008. "Improving the Management of Secondary and Tertiary Roads in the South East Europe Countries," World Bank Other Operational Studies 6213, The World Bank.
  15. World Bank, 2004. "Chile - Rural Infrastructure in Chile : Enhancing Efficiency and Sustainability," World Bank Other Operational Studies 14371, The World Bank.
  16. Mu, Ren & van de Walle, Dominique, 2007. "Rural roads and poor area development in Vietnam," Policy Research Working Paper Series 4340, The World Bank.

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