11 research outputs found

    Estimating the long-term impacts of rural roads : a dynamic panel approach

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    Infrastructure investments are typically long-term. As a result, observed benefits to households and communities may vary considerably over time as short-term outcomes generate or are subsumed by longer-term impacts. This paper uses a new round of household survey as part of a local government engineering department's rural road improvement project financed by the World Bank in Bangladesh to compare the short-term and long-term effects of rural roads over eight years. A dynamic panel model, estimated by generalized method of moments, is applied to estimate the varying returns to public road investment accounting for time-varying unobserved characteristics. The results show that the substantial effects of roads on such outcomes as per capita expenditure, schooling, and prices as observed in the short run attenuate over time. But the declining returns are not common for all outcomes of interest or all households. Employment in the rural non-farm sector, for example, has risen more rapidly over time, indicating increasing returns to investment. The very poor have failed to sustain the short-term benefits of roads, and yet the gains accrued to the middle-income groups are strengthened over time because of changing sectors of employment, away from agriculture toward non-farm activity. The results also show that initial state dependence -- or initial community and household characteristics as well as road quality -- matters in estimating the trajectory of road impacts.Transport Economics Policy&Planning,Housing&Human Habitats,Economic Theory&Research,Rural Poverty Reduction,Rural Roads&Transport

    The poverty impact of rural roads : evidencefrom Bangladesh

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    The rationale for public investment in rural roads is that households can better exploit agricultural and nonagricultural opportunities to use labor and capital more efficiently. But significant knowledge gaps remain as to how opportunities provided by roads actually filter back into household outcomes and their distributional consequences. This paper examines the impacts of rural road projects using household-level panel data from Bangladesh. Rural road investments are found to reduce poverty significantly through higher agricultural production, higher wages, lower input and transportation costs, and higher output prices. Rural roads also lead to higher girls'and boys'schooling. Road investments are pro-poor, meaning the gains are proportionately higher for the poor than for the non-poor.Transport Economics Policy&Planning,Rural Roads&Transport,Economic Theory&Research,Rural Transport,Rural Poverty Reduction

    Internet: www.worldbank.org

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    This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development

    The Poverty Impact of Rural Roads: Evidence from Bangladesh

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    A rationale for public investment in rural roads is that households can better exploit agricultural and nonagricultural opportunities to employ labor and capital more efficiently. Significant knowledge gaps persist, however, as to how opportunities provided by roads actually filter back into household outcomes as well as distributional consequences. This study examines the impacts of two rural road-paving projects in Bangladesh using a new quasi-experimental household panel data set surveying project and control villages before and after program implementation. A household panel fixed-effects methodology controlling for initial area conditions is used to estimate the impact of paved roads on household and individual outcomes and account for potential bias in program placement at the village level. Rural road investments are found to reduce poverty significantly through higher agricultural production, lower input and transportation costs, and higher agricultural output prices at local village markets. Rural road development has also led to higher secondary schooling enrollment for boys and girls, as compared to primary school enrollment. We find that road investments have also benefited the poor, meaning the gains are significant for the poor and in some cases disproportionately higher than for the nonpoor. (c) 2009 by The University of Chicago. All rights reserved..

    Are Pro-Growth Policies Pro-Poor? Evidence from Bangladesh 1

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    The characterization of pro-poor growth, including the sources through which the poor benefit from public interventions, remains a topic of debate in the current development literature. This paper examines the impact of a range of policies across villages in rural Bangladesh (spanning credit and infrastructure expansion, as well as agricultural output pricing) not only on different sources of income growth, but also on per capita expenditure and poverty to determine the veins through which households have benefited from such policies. Higher agricultural output prices and village electrification lead to substantial income gains, primarily through farm income, as well as poverty reduction across the distribution of households. In contrast, commercial bank expansion promotes farm and non-farm income growth, but does not lead to substantial poverty reduction. Policies that have limited distributional impact on household income have also led to substantial poverty reduction, such as microcredit (which enhances non-farm income for only low-income households) and paved road access (which enhances total income and farm income only for households at the highest end of the distribution). 1 The authors would like to thank Martin Ravallion, seminar participants at the Asian Development Bank, as well a

    Handbook on Impact Evaluation : Quantitative Methods and Practices

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    This book reviews quantitative methods and models of impact evaluation. The formal literature on impact evaluation methods and practices is large, with a few useful overviews. Yet there is a need to put the theory into practice in a hands-on fashion for practitioners. This book also details challenges and goals in other realms of evaluation, including monitoring and evaluation (M&E), operational evaluation, and mixed-methods approaches combining quantitative and qualitative analyses. This book is organized as follows. Chapter two reviews the basic issues pertaining to an evaluation of an intervention to reach certain targets and goals. It distinguishes impact evaluation from related concepts such as M&E, operational evaluation, qualitative versus quantitative evaluation, and ex-ante versus ex post impact evaluation. Chapter three focuses on the experimental design of an impact evaluation, discussing its strengths and shortcomings. Various non-experimental methods exist as well, each of which are discussed in turn through chapters four to seven. Chapter four examines matching methods, including the propensity score matching technique. Chapter five deal with double-difference methods in the context of panel data, which relax some of the assumptions on the potential sources of selection bias. Chapter six reviews the instrumental variable method, which further relaxes assumptions on self-selection. Chapter seven examines regression discontinuity and pipeline methods, which exploit the design of the program itself as potential sources of identification of program impacts. Specifically, chapter eight presents a discussion of how distributional impacts of programs can be measured, including new techniques related to quantile regression. Chapter nine discusses structural approaches to program evaluation, including economic models that can lay the groundwork for estimating direct and indirect effects of a program. Finally, chapter ten discusses the strengths and weaknesses of experimental and non-experimental methods and also highlights the usefulness of impact evaluation tools in policy making
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