Skip to Main Navigation

Infrastructure and Structural Change in the Horn of Africa (English)

Access to infrastructure supports economic development through both capital accumulation and structural transformation. This paper investigates the links between investments in electricity, Internet, and road infrastructure, in isolation and bundled, and economic development in the Horn of Africa, a region that includes countries with different levels of infrastructure and economic development. Using data on the expansion of the road, electricity, and Internet networks over the past two decades, it provides reduced-form estimates of the impacts of infrastructure investments on the sectoral composition of employment. Bundled infrastructure investments cause different patterns of structural transformation than isolated infrastructure investments. The impact of bundled road and electricity investments on reducing the sectoral employment share in agriculture is found to be 2.5 times larger than the impact of roads alone. The paper then uses a spatial general equilibrium model to quantify the impacts of future regional transport investments, bundled with electricity and trade facilitation measures, on economic development in countries in the Horn of Africa.


  • Author

    Herrera Dappe,Matias, Lebrand,Mathilde Sylvie Maria

  • Document Date


  • Document Type

    Policy Research Working Paper

  • Report Number


  • Volume No


  • Total Volume(s)


  • Country


  • Region


  • Disclosure Date


  • Disclosure Status


  • Doc Name

    Infrastructure and Structural Change in the Horn of Africa

  • Keywords

    Electricity; share of employment; energy sector management assistance; Demographic and Health Survey; long-run growth; Access to Electricity; access to internet; road infrastructure investment; transport infrastructure investment; source of energy supply; sectoral employment; general equilibrium model; paved road; agricultural employment; employment in agriculture; Manufacturing; trade facilitation measures; impacts of infrastructure; investments in infrastructure; impact of road; agricultural sector; access to infrastructure; investment in road; prices for goods; increased market access; reduction in employment; improved market access; least squares regression; investment in electricity; structure of employment; local economic activity; interstate highway system; export of goods; limited infrastructure; equal marginal cost; accumulation of skills; price of land; household survey data; distribution of population; elasticity of output; regional road; labor market opportunities; income from land; european space agency; per capita income; changes in trade; competition from imports; change in employment; quality of infrastructure; power transmission grid; improving market access; source of electricity; movement of worker; quality of job; Local Economic Development; sectors of production; location of road; impact of transport; employment share; trade costs; welfare gains; real income; transport investment; electricity investment; comparative advantage; new roads; road condition; population center; productivity increase; land market; welfare impact; transport cost; empirical analysis; productivity shock; increase productivity; rural transportation infrastructure; infrastructure expansion; reduce border; border delays; electricity access; interaction effect; instrumental variable; electricity network; electricity grid; border infrastructure; global power; remote area; large town; labor mobility; price index; electricity generator; border area; border post; future research; unbalanced panel; backbone network; population data; Learning and Innovation Credit; productivity gain; corridor investment; land size; human settlement; global market; road expansion; endogenous variable; general-equilibrium model; subnational region; low border; Road Networks; regional market; measurement error; moving workers; main road; big data; wind generator; machine learning; electricity infrastructure; enumeration area; individual response; geographic location; data error; land cover; estimation result; standard error; internet infrastructure; district population; land surface; allocation decision; inaccurate information; spatial patterns; road corridor; transport network; Proposed Investment; nominal wage; road investment; welfare change; agricultural activity; regional connectivity; agricultural production; green area; border regions; arid region; regional specialization; agricultural good; road improvement; electricity coverage; informal sector; agricultural productivity; quantitative analysis; meeting papers; Open Data; economic geography; constant return; initial value; endogenous regressor; trade links; several countries; cross-border trade; manufacturing good; representative household; upper tier; functional form; land consumption; consumption index; traditional sector; production side; tradable sector; climatic characteristics; perfect competition; destination location; manufacturing sector; expenditure share; labor income; free mobility; amenity value; land rental; new investment; real wage; housing price; alternate route; trade center; wage labor; economic specialization; grid extension; satellite image; transmission line; network expansion; imperfect information; productivity growth; dual economy; cheaper goods; agricultural worker; government source; spatial distribution; remote sensing; total employment; new information; local economy; smaller share; rural area; improved connectivity; power network; Research Support; satellite data; open acces



Official version of document (may contain signatures, etc)

  • Official PDF
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.


Herrera Dappe,Matias Lebrand,Mathilde Sylvie Maria

Infrastructure and Structural Change in the Horn of Africa (English). Policy Research working paper,no. WPS 9870 Washington, D.C. : World Bank Group.