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Rural roads and poor area development in Vietnam

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  • Mu, Ren
  • van de Walle, Dominique

Abstract

The authors assess impacts of rural road rehabilitation on market development at the commune level in rural Vietnam and examine the variance of those impacts and the geographic, community, and household factors that explains it. Double difference and matching methods are used to address sources of selection bias in identifying impacts. The results point to significant average impacts on the development of local markets. They also uncover evidence of considerable impact heterogeneity, with a tendency for poorer communes to have higher impacts due to lower levels of initial market development. Yet, poor areas are also saddled with other attributes that reduce those impacts.

Suggested Citation

  • Mu, Ren & van de Walle, Dominique, 2007. "Rural roads and poor area development in Vietnam," Policy Research Working Paper Series 4340, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4340
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    References listed on IDEAS

    as
    1. van de Walle, Dominique & Mu, Ren, 2007. "Fungibility and the flypaper effect of project aid: Micro-evidence for Vietnam," Journal of Development Economics, Elsevier, vol. 84(2), pages 667-685, November.
    2. Shahidur R. Khandker & Zaid Bakht & Gayatri B. Koolwal, 2009. "The Poverty Impact of Rural Roads: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 685-722, July.
    3. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, July.
    4. Stefan Dercon & Daniel O. Gilligan & John Hoddinott & Tassew Woldehanna, 2007. "The impact of roads and agricultural extension on consumption growth and poverty in fifteen Ethiopian villages," CSAE Working Paper Series 2007-01, Centre for the Study of African Economies, University of Oxford.
    5. Jalan, Jyotsna & Ravallion, Martin, 1998. "Are there dynamic gains from a poor-area development program?," Journal of Public Economics, Elsevier, vol. 67(1), pages 65-85, January.
    6. Michael Lokshin & Ruslan Yemtsov, 2005. "Has Rural Infrastructure Rehabilitation in Georgia Helped the Poor?," The World Bank Economic Review, World Bank, vol. 19(2), pages 311-333.
    7. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    8. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    9. Escobal D'Angelo, Javier & Ponce, Carmen, 2002. "The benefits of rural roads: enhancing income opportunities for the rural poor," Working Papers 37751, Group for the Analysis of Development (GRADE).
    10. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
    11. Jacoby, Hanan C, 2000. "Access to Markets and the Benefits of Rural Roads," Economic Journal, Royal Economic Society, vol. 110(465), pages 713-737, July.
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    Keywords

    Transport Economics Policy&Planning; Housing&Human Habitats; Debt Markets; Markets and Market Access; Economic Theory&Research;
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