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Bright Investments: Measuring the Impact of Transport Infrastructure Using Luminosity Data in Haiti

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  • Mitnik, Oscar A.
  • Sanchez, Raul
  • Yañez, Patricia

Abstract

This paper quantifies the impacts of transport infrastructure investments on economic activity in Haiti, proxied by satellite luminosity data. Our identification strategy exploits the differential timing of rehabilitation projects across various road segments of the primary road network. We combine multiple sources of non-traditional data and carefully address concerns related to unobserved heterogeneity. The results obtained across multiple specifications consistently indicate that receiving a road rehabilitation project leads to an increase in luminosity values between 7 percent and 15 percent at the communal section level. Taking into account the national level elasticity between luminosity values and GDP, we approximate that these interventions translate in GDP increases of around 0.6 percent and 1.2 percent in communal sections that were benefited by a transport project. Findings also uncover some temporal and spatial variation, showing that effects take some time to appear and that it is not the richest or the poorest communities that are gaining from these investments but those in the middle of the income distribution.

Suggested Citation

  • Mitnik, Oscar A. & Sanchez, Raul & Yañez, Patricia, 2018. "Bright Investments: Measuring the Impact of Transport Infrastructure Using Luminosity Data in Haiti," IDB Publications (Working Papers) 28, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:28
    DOI: http://dx.doi.org/10.18235/0001474
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    3. Stein, Merlin, 2021. "Re-evaluating RCTs with nightlights - An example from biometric smartcards in India," University of Tübingen Working Papers in Business and Economics 152, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    4. Karimah, Indra Degree & Yudhistira, Muhammad Halley, 2020. "Does small-scale port investment affect local economic activity? Evidence from small-port development in Indonesia," Economics of Transportation, Elsevier, vol. 23(C).

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    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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