Infrastructure and Finance : Evidence from India's GQ Highway Network

Infrastructure and Finance : Evidence from India's GQ Highway Network

This paper uses the construction of India's Golden Quadrangle central highway network, together with comprehensive loan data from the Reserve Bank of India, to investigate the interaction between infrastructure development and financial sector...

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Bibliographic Details
Main Authors: Das, Abhiman, Ghani, Ejaz, Grover, Arti, Kerr, William, Nanda, Ramana
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
GOLDEN QUADRANGLE
HIGHWAY NETWORK
INFRASTRUCTURE INVESTMENT
ROADS
INFRASTRUCTURE FINANCE
Online Access:http://documents.worldbank.org/curated/en/729281560437538266/Infrastructure-and-Finance-Evidence-from-Indias-GQ-Highway-Network
http://hdl.handle.net/10986/31875
id okr-10986-31875
recordtype oai_dc
spelling okr-10986-318752022-09-19T12:16:38Z Infrastructure and Finance : Evidence from India's GQ Highway Network Das, Abhiman Ghani, Ejaz Grover, Arti Kerr, William Nanda, Ramana GOLDEN QUADRANGLE HIGHWAY NETWORK INFRASTRUCTURE INVESTMENT ROADS INFRASTRUCTURE FINANCE This paper uses the construction of India's Golden Quadrangle central highway network, together with comprehensive loan data from the Reserve Bank of India, to investigate the interaction between infrastructure development and financial sector depth. The paper identifies a disproportionate increase in loan count and average loan size in districts along the Golden Quadrangle highway network, using stringent specifications with industry and district fixed effects. The results hold in straight-line instrumental variable frameworks and are not present in placebo tests with another highway that was planned to be upgraded at the same time as Golden Quadrangle but subsequently delayed. Importantly, however, the results are concentrated in districts with stronger initial financial development, suggesting that although financing responds to large infrastructure investments and helps spur real economic outcomes, initial financial sector development might play an important role in determining where real activity will grow. 2019-06-13T21:29:52Z 2019-06-13T21:29:52Z 2019-06 Working Paper http://documents.worldbank.org/curated/en/729281560437538266/Infrastructure-and-Finance-Evidence-from-Indias-GQ-Highway-Network http://hdl.handle.net/10986/31875 English Policy Research Working Paper;No. 8885 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 South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic GOLDEN QUADRANGLE
HIGHWAY NETWORK
INFRASTRUCTURE INVESTMENT
ROADS
INFRASTRUCTURE FINANCE
spellingShingle GOLDEN QUADRANGLE
HIGHWAY NETWORK
INFRASTRUCTURE INVESTMENT
ROADS
INFRASTRUCTURE FINANCE
Das, Abhiman
Ghani, Ejaz
Grover, Arti
Kerr, William
Nanda, Ramana
Infrastructure and Finance : Evidence from India's GQ Highway Network
geographic_facet South Asia
India
relation Policy Research Working Paper;No. 8885
description This paper uses the construction of India's Golden Quadrangle central highway network, together with comprehensive loan data from the Reserve Bank of India, to investigate the interaction between infrastructure development and financial sector depth. The paper identifies a disproportionate increase in loan count and average loan size in districts along the Golden Quadrangle highway network, using stringent specifications with industry and district fixed effects. The results hold in straight-line instrumental variable frameworks and are not present in placebo tests with another highway that was planned to be upgraded at the same time as Golden Quadrangle but subsequently delayed. Importantly, however, the results are concentrated in districts with stronger initial financial development, suggesting that although financing responds to large infrastructure investments and helps spur real economic outcomes, initial financial sector development might play an important role in determining where real activity will grow.
format Working Paper
author Das, Abhiman
Ghani, Ejaz
Grover, Arti
Kerr, William
Nanda, Ramana
author_facet Das, Abhiman
Ghani, Ejaz
Grover, Arti
Kerr, William
Nanda, Ramana
author_sort Das, Abhiman
title Infrastructure and Finance : Evidence from India's GQ Highway Network
title_short Infrastructure and Finance : Evidence from India's GQ Highway Network
title_full Infrastructure and Finance : Evidence from India's GQ Highway Network
title_fullStr Infrastructure and Finance : Evidence from India's GQ Highway Network
title_full_unstemmed Infrastructure and Finance : Evidence from India's GQ Highway Network
title_sort infrastructure and finance : evidence from india's gq highway network
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/729281560437538266/Infrastructure-and-Finance-Evidence-from-Indias-GQ-Highway-Network
http://hdl.handle.net/10986/31875
_version_ 1764475269713756160

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