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The benefits of rural roads. Enhancing income opportunities for the rural poor

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Abstract

Most studies have measured the benefits of rehabilitated rural roads by focusing on reductions in monetary or time costs needed to access product and factor markets or key public social services. This paper complements these studies by evaluating their impact on key welfare indicators such as income or consumption. Looking at rural households living in some of the poorest districts of Peru, this study compares (using propensity score matching techniques) households located near rehabilitated roads to suitable controls. Results show that rehabilitated road accessibility can be related to changes in income sources, as the rehabilitated road enhances non-agricultural income opportunities, especially from wage-employment sources. The study also finds that income expansion is not been matched by an equivalent consumption increase; apparently because the additional income is allocated to savings, through increments in livestock, most likely because road quality improvement is being perceived as transitory.

Suggested Citation

  • Javier Escobal & Carmen Ponce, 2003. "The benefits of rural roads. Enhancing income opportunities for the rural poor," Documentos de Investigación dt40b, Grupo de Análisis para el Desarrollo (GRADE).
  • Handle: RePEc:gad:doctra:dt40b Note: Documento de trabajo, 40-I
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    Cited by:

    1. World Bank, 2007. "China's Expressways : Connecting People and Markets for Equitable Development," World Bank Other Operational Studies 7933, The World Bank.
    2. Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
    3. Alberto Zezza & Paul Winters & Benjamin Davis & Gero Carletto & Katia Covarrubias & Esteban Quinones & Kostas Stamoulis & Takis Karfakis & Luca Tasciotti & Stefania DiGiuseppe & Genny Bonomi, 2007. "Rural Household Access to Assets and Agrarian Institutions; A Cross Country Comparison," Working Papers 07-17, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    4. Schürenberg-Frosch, Hannah, 2011. "One model fits all? Determinants of transport costs across sectors and country groups," Center for European, Governance and Economic Development Research Discussion Papers 122, University of Goettingen, Department of Economics.
    5. World Bank, 2008. "Improving the Management of Secondary and Tertiary Roads in the South East Europe Countries," World Bank Other Operational Studies 7786, The World Bank.
    6. Wiig, Henrik, 2003. "The Productivity of Social Capital - An Econometric Analysis of 49 Peruvian Highland Communities," Memorandum 27/2003, Oslo University, Department of Economics.
    7. World Bank, 2004. "Chile - Rural Infrastructure in Chile : Enhancing Efficiency and Sustainability," World Bank Other Operational Studies 14371, The World Bank.
    8. Wong, Ho Lun & Luo, Renfu & Zhang, Linxiu & Rozelle, Scott, 2013. "Providing quality infrastructure in rural villages: The case of rural roads in China," Journal of Development Economics, Elsevier, pages 262-274.
    9. Laszlo, Sonia, 2008. "Education, Labor Supply, and Market Development in Rural Peru," World Development, Elsevier, vol. 36(11), pages 2421-2439, November.
    10. Mu, Ren & van de Walle, Dominique, 2007. "Rural roads and poor area development in Vietnam," Policy Research Working Paper Series 4340, The World Bank.
    11. Qin, Yu & Zhang, Xiaobo, 2016. "The Road to Specialization in Agricultural Production: Evidence from Rural China," World Development, Elsevier, vol. 77(C), pages 1-16.
    12. Rodríguez-Pose, Andrés & Hardy, Daniel, 2015. "Addressing poverty and inequality in the rural economy from a global perspective," LSE Research Online Documents on Economics 63257, London School of Economics and Political Science, LSE Library.
    13. Christian K.M. Kingombe & Salvatore di Falco, 2012. "The Impact of a Feeder Road Project on Cash Crop Production in Zambia’s Eastern Province between 1997 and 2002, Labour Market and Fiscal Policy," IHEID Working Papers 04-2012, Economics Section, The Graduate Institute of International Studies, revised 28 Feb 2012.
    14. Lindsay A. K. & Mukole Kongolo, 2015. "Rural Roads and Agricultural Development in Swaziland," Journal of Social Science Studies, Macrothink Institute, vol. 2(1), pages 209-220, January.
    15. Calderon, Cesar & Serven, Luis, 2008. "Infrastructure and economic development in Sub-Saharan Africa," Policy Research Working Paper Series 4712, The World Bank.
    16. World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Other Operational Studies 8172, The World Bank.
    17. Antoci, Angelo & Russu, Paolo & Ticci, Elisa, 2009. "Distributive impact of structural change: Does environmental degradation matter?," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 266-278, December.
    18. Iimi,Atsushi & Lancelot,Eric R. & Manelici,Isabela & Ogita,Satoshi, 2015. "Social and economic impacts of rural road improvements in the state of Tocantins, Brazil," Policy Research Working Paper Series 7249, The World Bank.
    19. Kristjanson, P. & Krishna, A. & Radeny, M. & Kuan, J. & Quilca, G. & Sanchez-Urrelo, A. & Leon-Velarde, C., 2007. "Poverty dynamics and the role of livestock in the Peruvian Andes," Agricultural Systems, Elsevier, pages 294-308.
    20. Kenneth Fortson & Randall Blair & Kathryn Gonzalez, 2015. "Evaluation of a Rural Road Rehabilitation Project in Armenia," Mathematica Policy Research Reports 3dad6663ad0343f28cb24633d, Mathematica Policy Research.
    21. World Bank, 2008. "Improving the Management of Secondary and Tertiary Roads in the South East Europe Countries," World Bank Other Operational Studies 6213, The World Bank.
    22. Schürenberg-Frosch, Hannah, 2012. "Determinants of transport costs: Are they uniform across countries?," Economics Discussion Papers 2012-54, Kiel Institute for the World Economy (IfW).
    23. Fujita, Yasuo, 2017. "Does a Rural Road Improvement Project Contribute to Inclusive Growth??A Case Study from Bangladesh," Working Papers 138, JICA Research Institute.

    More about this item

    Keywords

    Carreteras; Ingresos de hogares; Empleo; Zonas rurales; Roads; Household income; Employment Rural areas; Peru;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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