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Rural roads and local economic development

By: Asher, Sam and Novosad, Paul.
Material type: materialTypeLabelBookPublisher: The American Economic Review Description: 110(3), Mar, 2020: p.797-823.Subject(s): Road maintenance, Transportation planning, Agricultural labor markets, Rural development In: The American Economic ReviewSummary: Nearly one billion people worldwide live in rural areas without access to national paved road networks. We estimate the impacts of India's 40 billion USD national rural road construction program using a fuzzy regression discontinuity design and comprehensive household and firm census microdata. Four years after road construction, the main effect of new feeder roads is to facilitate the movement of workers out of agriculture. However, there are no major changes in agricultural outcomes, income, or assets. Employment in village firms expands only slightly. Even with better market connections, remote areas may continue to lack economic opportunities. – Reproduced
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Articles Articles Indian Institute of Public Administration
110(3), Mar, 2020: p.797-823 Available AR123250

Nearly one billion people worldwide live in rural areas without access to national paved road networks. We estimate the impacts of India's 40 billion USD national rural road construction program using a fuzzy regression discontinuity design and comprehensive household and firm census microdata. Four years after road construction, the main effect of new feeder roads is to facilitate the movement of workers out of agriculture. However, there are no major changes in agricultural outcomes, income, or assets. Employment in village firms expands only slightly. Even with better market connections, remote areas may continue to lack economic opportunities. – Reproduced

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