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Rural Roads, Poverty, and Resilience : Evidence from Ethiopia (English)

This study analyzes the impacts of the recent rural road development in Ethiopia on welfare and economic outcomes. The identification of the impacts relies on a difference-in-differences matching approach, taking advantage of the nationally representative household survey and the original road database, both of which are panel data spanning between 2012 and 2016. The results of the econometric analysis overall suggest that Ethiopia's recent rural road development has substantially increased household welfare and supported households in coping with the recent severe droughts. This study estimates that rural roads increased, on average, household consumption by 16.1 percent between 2012 and 2016 (or 3.8 percent per year). The effects of rural road development were largest in the most remote communities, as it increased household consumption by 27.9 percent. Furthermore, in the communities most affected by the El Niño drought, the likelihood of falling into poverty was 14.4 percent lower between 2012 and 2016 if the community was connected by a rural road. Taken together, the results suggest that, by connecting remote communities to markets, rural roads have substantially increased the welfare and resilience of rural households in shock-prone environments.


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    Nakamura,Shohei, Bundervoet,Tom, Nuru,Mohammed

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    Policy Research Working Paper

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    Rural Roads, Poverty, and Resilience : Evidence from Ethiopia

  • Keywords

    road development; household consumption; Poverty and Equity; international food policy research institute; drought; Internal rate of return; rural road program; remote area; household annual consumption; rural road access; panel data set; rural road investment; impact of road; propensity score matching; share of wage; estimate impact; provision of access; cambridge university press; annual household consumption; rural road rehabilitation; analysis of poverty; households with electricity; high population density; job training program; level of consumption; rural road construction; impacts of drought; transfer to food; consumer price index; social science research; impacts on agriculture; effect of drought; Local Economic Development; official poverty line; household expenditure survey; average travel time; spatial price index; normalize difference vegetation; geographic poverty trap; average household consumption; road development program; impact of disaster; natural logarithm; severe drought; rural community; remote community; matching method; household welfare; weather shock; adult equivalent; econometric analysis; consumption growth; household characteristic; standard error; drought exposure; estimation result; development study; world development



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Nakamura,Shohei Bundervoet,Tom Nuru,Mohammed

Rural Roads, Poverty, and Resilience : Evidence from Ethiopia (English). Policy Research working paper,no. WPS 8800 Washington, D.C. : World Bank Group.