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Wider economic benefits of investments in transport corridors and the role of complementary policies (English)

This paper estimates the impact of the Golden Quadrilateral and North-South-East-West Highways in India on welfare, social inclusion, and environmental quality. The analysis uses district-level data for 1994-2011 and the difference-in-difference method. The results suggest that the highways shifted employment from the farm to the nonfarm sector, and that this shift was accompanied by an increase in output per capita. However, there is no evidence of an impact on household expenditure per capita, the poverty rate, or the incidence of regular wage employment. The results suggest that the highways caused an increase in air pollution. The effects of the highways are heterogeneous, depending on conditions in local factor and product markets.

Details

  • Author

    Melecky,Martin, Sharma,Siddharth, Subhash,Hari

  • Document Date

    2018/02/21

  • Report Number

    WPS8350

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    India,

  • Region

    South Asia,

  • Disclosure Date

    2018/02/21

  • Disclosure Status

    Disclosed

  • Doc Name

    Wider economic benefits of investments in transport corridors and the role of complementary policies

  • Keywords

    instrumental variable estimation; access to formal finance; access to bank account; institution need; access to bank loan; high levels of literacy; access to finance; labor market condition; aerosol optical thickness; panel data set; measures of welfare; labor market outcome; measure of governance; availability of land; reallocation of resource; labor market variable; composition of employment; impacts of infrastructure; design of transport; vehicle operating cost; forms of employment; per capita expenditure; formal bank account; labor force data; employment and unemployment; product market competition; product market condition; complete secondary school; secondary school education; movement of women; increased market access; share of output; per capita consumption; impact of transport; labor market friction; negative environmental impact; estimation of equation; formal financial service; local market condition; unskilled rural worker; household consumption expenditure; movement of labor; rate of literacy; access to banking; impact of road; nitrogen oxide emission; carbon dioxide emission; transport infrastructure investment; highway network; positive impact; land market; highway construction; comparative advantage; female employment; fixed effect; factor market; farm employment; estimate impact; corridor investment; metropolitan area; formal manufacturing; highway system; rural area; particulate pollution; fiscal performance; interaction effect; treatment group; point estimate; indian states; economic welfare; household expenditure; wage employment; industrial composition; rural transportation infrastructure; total employment; domestic migration; crop land; factor endowment; high share; cold chain; developmental outcomes; statistical significance; welfare indicator; labor regulation; increase growth; formal sector; high entry; satellite imagery; administrative level; wage labor; allocative efficiency; public intervention; conditional effect; complementary factor; general equilibrium; manufacturing industry; literacy level; Product Diversification; household access; farm product; robustness check; estimation strategy; primary data; initial value; mineral production; highway segment; highway planner; low-productivity agriculture; headcount measure; cleaner vehicle; income rise; standard practice; land area; industrial purpose; banking access; poverty headcount; low-skilled worker; employment opportunities; equilibrium wage; soft infrastructure; international standard; employment opportunity; commercial center; migration datum; environmental measure; light intensity; general population; explanatory variable; rural-urban migration; paying job; short period; inventory hold; supply chain; metropolitan city; literature review; complementary reform; formal payment; express highway; farm land; agricultural product; increased trade; educational qualification; important policy; macroeconomic shock; governance measure; industrial establishments; improved connectivity; human capital; social exclusion; Research Support; Gender Equality; social inclusion; large-scale infrastructure; intermediate outcome; local economy; nonfarm sector; development policy; land use; cost-benefit analysis; foreign trade; regression estimation; market efficiency; study period; governance performance; environmental outcome; welfare outcome; environmental degradation; implementing policy; small sample; private ownership; open access; income inequality; protected area; real income; Job Creation; land acquisition; methodological approach; household asset; aerosol particle; empirical analysis; complementary policies; household earning; formal loan; savings account; basic specification; unmet demand; educated population; asset diversification; estimation methodology; Basic Education; separate category; conservative approach

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Citation

Melecky,Martin Sharma,Siddharth Subhash,Hari

Wider economic benefits of investments in transport corridors and the role of complementary policies (English). Policy Research working paper,no. WPS 8350 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/982341519219762457/Wider-economic-benefits-of-investments-in-transport-corridors-and-the-role-of-complementary-policies