Rural Roads and Local Economic Development
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World Bank, Washington, DC
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Nearly one billion people worldwide live
in rural areas without access to the paved road network.
This paper measures the impacts of India's $40 billion
national rural road construction program using regression
discontinuity and data covering every individual and firm in
rural India. The main effect of new feeder roads is to allow
workers to obtain nonfarm work. However, there are no major
changes in consumption, assets or agricultural outcomes.
Nonfarm employment in the village expands only slightly,
suggesting the new work is found outside of the village.
Even with better market connections, remote areas may
continue to lack economic opportunities.
Palabras clave
TRANSPORT, LOCAL ECONOMIC DEVELOPMENT, RURAL ROADS, NONFARM EMPLOYMENT, FEEDER ROADS, LABOR MARKET