2020
DOI: 10.1257/aer.20180268
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Rural Roads and Local Economic Development

Abstract: 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 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. Employme… Show more

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Cited by 315 publications
(165 citation statements)
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References 74 publications
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“…Using the construction of a network of new highways to connect the new capital of Brasilia, Brazil, as a natural experiment, Morten and Oliveira (2019) find that roads promoted internal migration in Brazil. Asher and Novosad (2020) also find changes in mobility and occupational choice in rural India associated with lastmile road connections to villages, identified by applying a regression discontinuity design to data on a massive village road building program. The lack of good transportation infrastructure is, in short, not just a barrier to trade in goods but to movements of workers internally.…”
Section: Resultsmentioning
confidence: 99%
“…Using the construction of a network of new highways to connect the new capital of Brasilia, Brazil, as a natural experiment, Morten and Oliveira (2019) find that roads promoted internal migration in Brazil. Asher and Novosad (2020) also find changes in mobility and occupational choice in rural India associated with lastmile road connections to villages, identified by applying a regression discontinuity design to data on a massive village road building program. The lack of good transportation infrastructure is, in short, not just a barrier to trade in goods but to movements of workers internally.…”
Section: Resultsmentioning
confidence: 99%
“…In the first step, we randomize the arrival of e-commerce across 100 villages in 3 provinces and 8 counties, and use our survey microdata to estimate the 7 In this way we relate but also differ from existing literature on the effects of transport cost reductions on rural markets (e.g. Van de Walle (2009); Casaburi et al (2013); Asher & Novosad (2018)) and on the effects of the internet on rural markets (e.g. Chapman & Slaymaker (2002); Goyal (2010); Forman et al (2012); WB (2016)).…”
mentioning
confidence: 99%
“…Lei et al (2017) highlight the importance of rural roads for female employment. Studying the impact of rural road scheme in India, Asher and Novosad (2018), however, caution against assuming road construction, that is, reduction in geographic distance, as the only form of required rural investment. They show that road construction in India led to a 10 percentage point decrease in the share of agricultural workers at the expense of a similar increase in wage labor.…”
Section: Focus On Agriculture and Rural Infrastructurementioning
confidence: 99%