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Highway networks and regional poverty: Evidence from Chinese counties

Author

Listed:
  • Tian, Zhihua
  • Hu, An
  • Yang, Zhen
  • Lin, Yongran

Abstract

This paper establishes a staggered difference-in-differences (DID) model to estimate the impact of highways on regional poverty using county-level panel data from China. We construct a multidimensional poverty index and use satellite-monitored night light brightness as a proxy indicator. The results demonstrate that highways significantly reduce county poverty and that the poverty reduction effect becomes increasingly pronounced over time. This result remains robust after controlling for non-random highway route selection. Furthermore, the poverty reduction effect of highways is conditional, with a significant poverty reduction effect in the less economically-developed western regions and non-municipal counties, and no significant poverty reduction effect in the economically-developed eastern and central regions and municipal districts. Moreover, the poverty reduction effect of highways gradually decreases as the average altitude of counties increases. Our tests provide empirical evidence for effective road investments in developing countries that incorporate poverty alleviation targets.

Suggested Citation

  • Tian, Zhihua & Hu, An & Yang, Zhen & Lin, Yongran, 2024. "Highway networks and regional poverty: Evidence from Chinese counties," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 224-231.
  • Handle: RePEc:eee:streco:v:69:y:2024:i:c:p:224-231
    DOI: 10.1016/j.strueco.2023.12.010
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    More about this item

    Keywords

    Highways; Poverty alleviation; Road infrastructure; Staggered difference-in-differences model; China;
    All these keywords.

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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