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The Impact of Road Development on Household Welfare in Rural Papua New Guinea

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  • Martin Wiegand
  • Eric Koomen
  • Menno Pradhan
  • Christopher Edmonds

Abstract

In this paper we evaluate the impact of road development on household welfare in rural Papua New Guinea (PNG) between 1996 and 2010, using two geocoded cross-sectional national household surveys and corresponding road maps. We make use of time-variation in road surface type and condition as recorded in PNG’s National Road Asset Management System, focusing on routes that connect rural households to urban areas. To tackle endogenous placement of road infrastructure programs, we employ a correlated random effects model that controls for the location-specific average road quality over the period of analysis. We also use a newly developed generalised quantile regression method to investigate whether road works favour the poor. Our estimates show that better roads to nearest towns lead to higher consumption levels and housing quality, and to less reliance on subsistence farming. The effects are stronger among poor and remote households.

Suggested Citation

  • Martin Wiegand & Eric Koomen & Menno Pradhan & Christopher Edmonds, 2023. "The Impact of Road Development on Household Welfare in Rural Papua New Guinea," Journal of Development Studies, Taylor & Francis Journals, vol. 59(6), pages 933-953, June.
    • Handle: RePEc:taf:jdevst:v:59:y:2023:i:6:p:933-953
    DOI: 10.1080/00220388.2023.2188111
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    Cited by:

    1. World Bank Group, 2020. "Papua New Guinea Economic Update, July 2020," World Bank Publications - Reports 34079, The World Bank Group.
    2. Emily Schmidt & Rachel Gilbert & Brian Holtemeyer & Kristi Mahrt, 2021. "Poverty analysis in the lowlands of Papua New Guinea underscores climate vulnerability and need for income flexibility," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 171-191, January.
    3. 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.

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    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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