Abstract

Rural access is among the most important infrastructure constraints in rural Africa. Using the results from comprehensive household surveys and other data from Ethiopia, the paper recasts light on the heterogeneous impacts of road accessibility on agriculture and nonagricultural growth. It is found that crop production is increased by major and feeder road improvements. Significant synergy is also found. When investigating further into this effect, there are two impacts: farmers' access to the input market, especially fertilizer, was improved mainly by major corridor improvement. And output market access was improved by feeder road improvement. In addition, the household's nonagricultural income is somehow increased by improved road connectivity. There must be secondary effects. The transport demand function estimated with additional data indicates that as the road network improves, people's mobility increases. Furthermore, local business employment is found to increase with road improvements. To meet the increasing demand for mobility, efficiency and frequency of transport services are important. Document type: Book

Abstract

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. Document type: Book