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Does the Accession of Road Reduce the Poverty? Evidence from Northern, Central, and Southern Parts of Lao PDR

Author

Listed:
  • Oulay Phadouangdeth

    (Planning and Cooperation Department, Ministry of Public Works and Transport, Laos)

  • Sounthone Phommason
  • Phouphet Kyophilavong
  • Inpaeng Sayvaya

    (National University of Laos, Laos)

Abstract

The purpose of this study is to examine the impact of road access at rainy season on poverty reduction in Lao PDR, by considering the effect of road access at rainy season on real expenditure per capita level in Northern, Central, Southern and Vientiane capital based on data from Lao expenditure and Consumption Survey (LECS4) in the 2007/08. We used the multiple regression analysis to prove the impact. The result shows that road access at rainy seasons has a significant positive impact on real expenditure per capita. We concluded that road access would allow farmers all season access to urban markets and expand agricultural production by improving productivity and would help to reduce poverty, especially in the central part and Vientiane capital. This study suggests that policy makers or private agencies should invest more on improving road in rural areas to link between rural and urban markets for expanding agricultural production, to reduce poverty and to achieve MDGs by 2015.

Suggested Citation

  • Oulay Phadouangdeth & Sounthone Phommason & Phouphet Kyophilavong & Inpaeng Sayvaya, 2014. "Does the Accession of Road Reduce the Poverty? Evidence from Northern, Central, and Southern Parts of Lao PDR," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(9), pages 377-386, September.
    • Handle: RePEc:ijr:journl:v:2:y:2014:i:9:p:377-386
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    References listed on IDEAS

    as
    1. Oulay Phadouangdeth & Sounthone Phommason & Phouphet Kyophilavong & Inpaeng Sayvaya, 2013. "The Impact of Road on Poverty Reduction in Lao PDR," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(11), pages 125-134, November.
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    3. Taiwo Peace Ogun, 2010. "Infrastructure and Poverty Reduction: Implications for Urban Development in Nigeria," WIDER Working Paper Series wp-2010-043, World Institute for Development Economic Research (UNU-WIDER).
    4. Peter Warr, 2010. "Roads And Poverty In Rural Laos: An Econometric Analysis," Pacific Economic Review, Wiley Blackwell, vol. 15(1), pages 152-169, February.
    5. Syviengxay, Oraboune, 2008. "Infrastructure (Rural Road) Development and Poverty Alleviation in Lao PDR," IDE Discussion Papers 151, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. AfDB AfDB, 2010. "Working Paper Series – Author Guidelines," Working Paper Series 357, African Development Bank.
    7. Ogun, T. P., 2010. "Infrastructure and Poverty Reduction: Implications for Urban Development in Nigeria," WIDER Working Paper Series 043, World Institute for Development Economic Research (UNU-WIDER).
    8. Robert Eastwood & Michael Lipton, 1999. "The impact of changes in human fertility on poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 36(1), pages 1-30.
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    More about this item

    Keywords

    Road access; poverty reduction;

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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