Rural Roads, Poverty, and Resilience : Evidence from Ethiopia

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 represe...

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Main Authors: Nakamura, Shohei, Bundervoet, Tom, Nuru, Mohammed
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/220781554130465463/Rural-Roads-Poverty-and-Resilience-Evidence-from-Ethiopia
http://hdl.handle.net/10986/31495
id okr-10986-31495
recordtype oai_dc
spelling okr-10986-314952022-09-19T12:17:44Z Rural Roads, Poverty, and Resilience : Evidence from Ethiopia Nakamura, Shohei Bundervoet, Tom Nuru, Mohammed RURAL ROADS POVERTY AGRICULTURE WEATHER SHOCKS DROUGHT 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. 2019-04-03T19:59:26Z 2019-04-03T19:59:26Z 2019-04 Working Paper http://documents.worldbank.org/curated/en/220781554130465463/Rural-Roads-Poverty-and-Resilience-Evidence-from-Ethiopia http://hdl.handle.net/10986/31495 English Policy Research Working Paper;No. 8800 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Ethiopia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic RURAL ROADS
POVERTY
AGRICULTURE
WEATHER SHOCKS
DROUGHT
spellingShingle RURAL ROADS
POVERTY
AGRICULTURE
WEATHER SHOCKS
DROUGHT
Nakamura, Shohei
Bundervoet, Tom
Nuru, Mohammed
Rural Roads, Poverty, and Resilience : Evidence from Ethiopia
geographic_facet Africa
Ethiopia
relation Policy Research Working Paper;No. 8800
description 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.
format Working Paper
author Nakamura, Shohei
Bundervoet, Tom
Nuru, Mohammed
author_facet Nakamura, Shohei
Bundervoet, Tom
Nuru, Mohammed
author_sort Nakamura, Shohei
title Rural Roads, Poverty, and Resilience : Evidence from Ethiopia
title_short Rural Roads, Poverty, and Resilience : Evidence from Ethiopia
title_full Rural Roads, Poverty, and Resilience : Evidence from Ethiopia
title_fullStr Rural Roads, Poverty, and Resilience : Evidence from Ethiopia
title_full_unstemmed Rural Roads, Poverty, and Resilience : Evidence from Ethiopia
title_sort rural roads, poverty, and resilience : evidence from ethiopia
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/220781554130465463/Rural-Roads-Poverty-and-Resilience-Evidence-from-Ethiopia
http://hdl.handle.net/10986/31495
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