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Urban Transportation Infrastructure and Poverty Reduction: Delhi Metro's Impact on the Cycle Rickshaw Rental Market

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  • Kurosaki, Takashi

Abstract

Based on a primary survey of cycle rickshaw pullers and rickshaw owners in Delhi, India, this paper estimates the causal impact of the opening and extension of Delhi Metro on the rental rates of cycle rickshaws. The cycle rickshaw rental market provides employment opportunities for unskilled, assetless workers who have migrated from rural areas because of poverty. A change in this market is thus expected to affect urban and rural poverty. Controlling for unobservable area characteristics using house tax information, we identify the causal impact depending on when Metro stations opened over the past decade. The regression results indicate that of the 1.6 percentage point increase in rental rates per km associated with a reduction in distance to a Metro station, approximately 1.0 point is attributable to the causal effect. Thus, Delhi Metro has increased the demand for cycle rickshaw services, which is a pro-poor consequence of the infrastructural investment.

Suggested Citation

  • Kurosaki, Takashi, 2012. "Urban Transportation Infrastructure and Poverty Reduction: Delhi Metro's Impact on the Cycle Rickshaw Rental Market," PRIMCED Discussion Paper Series 24, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:primdp:24
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/22870/No24-dp.pdf
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    References listed on IDEAS

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    Cited by:

    1. Harding, Simon & Kandlikar, Milind, 2017. "Explaining the rapid emergence of battery-rickshaws in New Delhi: Supply-demand, regulation and political mobilisation," World Development Perspectives, Elsevier, vol. 7, pages 22-27.
    2. Muhammad Akbar & Abdullah & Amjad Naveed & Shabib Haider Syed, 2022. "Does an Improvement in Rural Infrastructure Contribute to Alleviate Poverty in Pakistan? A Spatial Econometric Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(1), pages 475-499, July.
    3. Kurosaki, Takashi & 黒崎, 卓 & Banerji, Asit & Mishra, S. N. & Mangal, A. K., 2012. "Unorganized Enterprises and Rural-Urban Migration in India: The Case of the Cycle Rickshaw Sector in Delhi," PRIMCED Discussion Paper Series 28, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    urban poverty; migration; infrastructure; informal sector;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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