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Rural Roads, Poverty, and Resilience : Evidence from Ethiopia

Author

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  • Nakamura,Shohei
  • Bundervoet,Tom
  • Nuru,Mohammed

Abstract

This study analyzes the impacts of the recent rural road development in Ethiopia on welfare and economic outcomes. The identification of the impacts relies on a difference-in-differences matching approach, taking advantage of the nationally representative household survey and the original road database, both of which are panel data spanning between 2012 and 2016. The results of the econometric analysis overall suggest that Ethiopia's recent rural road development has substantially increased household welfare and supported households in coping with the recent severe droughts. This study estimates that rural roads increased, on average, household consumption by 16.1 percent between 2012 and 2016 (or 3.8 percent per year). The effects of rural road development were largest in the most remote communities, as it increased household consumption by 27.9 percent. Furthermore, in the communities most affected by the El Niño drought, the likelihood of falling into poverty was 14.4 percent lower between 2012 and 2016 if the community was connected by a rural road. Taken together, the results suggest that, by connecting remote communities to markets, rural roads have substantially increased the welfare and resilience of rural households in shock-prone environments.

Suggested Citation

  • Nakamura,Shohei & Bundervoet,Tom & Nuru,Mohammed, 2019. "Rural Roads, Poverty, and Resilience : Evidence from Ethiopia," Policy Research Working Paper Series 8800, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8800
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    Cited by:

    1. Daniel A. Mekonnen & Olutayo Adeyemi & Rachel Gilbert & Dare Akerele & Thom Achterbosch & Anna Herforth, 2023. "Affordability of healthy diets is associated with increased food systems performance in Nigeria: state-level analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-27, December.
    2. Hirvonen, Kalle & Sohnesen, Thomas Pave & Bundervoet, Tom, 2020. "Impact of Ethiopia’s 2015 drought on child undernutrition," World Development, Elsevier, vol. 131(C).
    3. Ben Brunckhorst, 2020. "Rural Mobility and Climate Vulnerability: Evidence from the 2015 Drought in Ethiopia," CSAE Working Paper Series 2020-17, Centre for the Study of African Economies, University of Oxford.
    4. Abate, Gashaw T. & Dereje, Mekdim & Hirvonen, Kalle & Minten, Bart, 2020. "Geography of public service delivery in rural Ethiopia," World Development, Elsevier, vol. 136(C).
    5. Noah Kaiser & Christina K. Barstow, 2022. "Rural Transportation Infrastructure in Low- and Middle-Income Countries: A Review of Impacts, Implications, and Interventions," Sustainability, MDPI, vol. 14(4), pages 1-48, February.
    6. Suchi Kapoor Malhotra & Howard White & Nina Ashley O. Dela Cruz & Ashrita Saran & John Eyers & Denny John & Ella Beveridge & Nina Blöndal, 2021. "Studies of the effectiveness of transport sector interventions in low‐ and middle‐income countries: An evidence and gap map," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    7. World Bank, 2020. "Ethiopia Poverty Assessment," World Bank Publications - Reports 33544, The World Bank Group.
    8. Demissie, Birhan S. & Kasie, Tesfahun A. & Upton, Joanna B. & Blom, Sylvia A., 2021. "Climate Shocks And Resilience: Evidence From Rural Ethiopia," PRCI Research Papers 320707, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.
    9. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    10. Ajit Pratap Singh & Makrand Wagale & Kunal Dhadse & Anjaney Singh, 2022. "Socioeconomic impacts of low-volume roads using a GIS-based multidimensional impact assessment approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6676-6701, May.
    11. Tesfahun, Birhan S. & Kasie, A. & Upton, Joanna B. & Blom, Sylvia A., 2021. "Climate Shocks And Resilience: Evidence From Rural Ethiopia," PRCI Research Papers 321060, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.

    More about this item

    Keywords

    Rural Roads&Transport; Inequality; Natural Disasters; Transport Services; Climate Change and Agriculture; Crops and Crop Management Systems;
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