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How road improvement reduces poverty: the case of Laos

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  • Peter Warr

Abstract

A general equilibrium modeling approach is used to study the effect that rural road improvement has on poverty incidence in Laos. Household survey data are used to distinguish three categories of rural villages according to their road access: (i) no vehicular access; (ii) dry season only access; and (iii) all weather access. A general equilibrium model of the Lao economy is then used to simulate, first, the effect of upgrading category (i) to category (ii) roads, and second, category (ii) to category (iii) roads. The former has a larger poverty‐reducing effect but is also more costly.

Suggested Citation

  • Peter Warr, 2008. "How road improvement reduces poverty: the case of Laos," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 269-279, November.
    • Handle: RePEc:bla:agecon:v:39:y:2008:i:3:p:269-279
    DOI: 10.1111/j.1574-0862.2008.00332.x
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    References listed on IDEAS

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    1. van de Walle, Dominique, 2002. "Choosing Rural Road Investments to Help Reduce Poverty," World Development, Elsevier, vol. 30(4), pages 575-589, April.
    2. Warr, Peter G., 2005. "Food policy and poverty in Indonesia: a general equilibrium analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(4), pages 1-23.
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    2. Lindy Charlery & Martin R. Nielsen & Henrik Meilby & Carsten Smith-Hall, 2016. "Effects of New Roads on Environmental Resource Use in the Central Himalaya," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    3. Phimmavong, Somvang & Keenan, Rodney J., 2020. "Forest plantation development, poverty, and inequality in Laos: A dynamic CGE microsimulation analysis," Forest Policy and Economics, Elsevier, vol. 111(C).
    4. Ali,Rubaba & Barra,Alvaro Federico & Berg,Claudia N. & Damania,Richard & Nash,John D. & Russ,Jason Daniel, 2015. "Infrastructure in conflict-prone and fragile environments : evidence from the Democratic Republic of Congo," Policy Research Working Paper Series 7273, The World Bank.
    5. Sithanonxay SUVANNAPHAKDY & Toshihisa TOYODA, 2019. "Assessing the Fiscal Impact of Trade Liberalization in Laos: A General Equilibrium Approach," GSICS Working Paper Series 34, Graduate School of International Cooperation Studies, Kobe University.
    6. Ina-Kathrin Spey & Denis Kupsch & Kadiri Serge Bobo & Matthias Waltert & Stefan Schwarze, 2019. "The Effects of Road Access on Income Generation. Evidence from An Integrated Conservation and Development Project in Cameroon," Sustainability, MDPI, vol. 11(12), pages 1-14, June.

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