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The poverty impact of rural roads : evidencefrom Bangladesh

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  • Khandker, Shahidur R.
  • Bakht, Zaid
  • Koolwal, Gayatri B.

Abstract

The rationale for public investment in rural roads is that households can better exploit agricultural and nonagricultural opportunities to use labor and capital more efficiently. But significant knowledge gaps remain as to how opportunities provided by roads actually filter back into household outcomes and their distributional consequences. This paper examines the impacts of rural road projects using household-level panel data from Bangladesh. Rural road investments are found to reduce poverty significantly through higher agricultural production, higher wages, lower input and transportation costs, and higher output prices. Rural roads also lead to higher girls'and boys'schooling. Road investments are pro-poor, meaning the gains are proportionately higher for the poor than for the non-poor.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3875.

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Date of creation: 01 Apr 2006
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Handle: RePEc:wbk:wbrwps:3875

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Keywords: Transport Economics Policy&Planning; Rural Roads&Transport; Economic Theory&Research; Rural Transport; Rural Poverty Reduction;

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  1. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
  2. Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993. "How infrastructure and financial institutions affect agricultural output and investment in India," Journal of Development Economics, Elsevier, vol. 41(2), pages 337-366, August.
  3. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-37, July.
  4. Bryceson, Deborah Fahy & Howe, John, 1993. "Rural household transport in Africa: Reducing the burden on women?," World Development, Elsevier, vol. 21(11), pages 1715-1728, November.
  5. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  6. Chamberlain, Gary, 1982. "Multivariate regression models for panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 5-46, January.
  7. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
  8. Koenker, Roger & Bassett, Gilbert, Jr, 1982. "Robust Tests for Heteroscedasticity Based on Regression Quantiles," Econometrica, Econometric Society, vol. 50(1), pages 43-61, January.
  9. Michael Lokshin & Ruslan Yemtsov, 2005. "Has Rural Infrastructure Rehabilitation in Georgia Helped the Poor?," World Bank Economic Review, World Bank Group, vol. 19(2), pages 311-333.
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