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Rural Roads, Poverty, and Resilience: Evidence from Ethiopia

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  • Shohei Nakamura
  • Tom Bundervoet
  • Mohammed Nuru

Abstract

This study analyses the linkage between the recent rural road development and household welfare, resilience, and economic conditions in Ethiopia. The empirical approach relies on a difference-in-differences matching method, taking advantage of a nationally representative household survey and an original road database, both of which are panel data spanning the period 2012–2016. The results of the econometric analysis suggest that Ethiopia’s rural road development was associated with a significant increase in household welfare or significant smaller losses in household consumption during the severe droughts. In addition, rural roads in very remote areas were associated with farmers’ sales of a larger share of their harvests and higher chance of fertiliser use. Rural road development was also associated with a higher likelihood of earning income from wage employment, particularly for women and youth. Taken together, the results suggest that, by connecting remote communities to markets and the main road network, rural roads have substantially supported the welfare and resilience of rural households in shock-prone Ethiopia.

Suggested Citation

  • Shohei Nakamura & Tom Bundervoet & Mohammed Nuru, 2020. "Rural Roads, Poverty, and Resilience: Evidence from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 56(10), pages 1838-1855, October.
    • Handle: RePEc:taf:jdevst:v:56:y:2020:i:10:p:1838-1855
    DOI: 10.1080/00220388.2020.1736282
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    Cited by:

    1. Daniel A. Mekonnen & Olutayo Adeyemi & Rachel Gilbert & Dare Akerele & Thom Achterbosch & Anna Herforth, 2023. "Affordability of healthy diets is associated with increased food systems performance in Nigeria: state-level analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-27, December.
    2. Abate, Gashaw T. & Dereje, Mekdim & Hirvonen, Kalle & Minten, Bart, 2020. "Geography of public service delivery in rural Ethiopia," World Development, Elsevier, vol. 136(C).
    3. Demissie, Birhan S. & Kasie, Tesfahun A. & Upton, Joanna B. & Blom, Sylvia A., 2021. "Climate Shocks And Resilience: Evidence From Rural Ethiopia," PRCI Research Papers 320707, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.
    4. Ajit Pratap Singh & Makrand Wagale & Kunal Dhadse & Anjaney Singh, 2022. "Socioeconomic impacts of low-volume roads using a GIS-based multidimensional impact assessment approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6676-6701, May.
    5. Hirvonen, Kalle & Sohnesen, Thomas Pave & Bundervoet, Tom, 2020. "Impact of Ethiopia’s 2015 drought on child undernutrition," World Development, Elsevier, vol. 131(C).
    6. TIEN MANH VU & Hiroyuki Yamada, 2024. "Impacts of improved rural roads on the well-being of Cambodian villagers," Keio-IES Discussion Paper Series 2024-016, Institute for Economics Studies, Keio University.
    7. Noah Kaiser & Christina K. Barstow, 2022. "Rural Transportation Infrastructure in Low- and Middle-Income Countries: A Review of Impacts, Implications, and Interventions," Sustainability, MDPI, vol. 14(4), pages 1-48, February.
    8. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    9. Lauren Veckranges, 2023. "Estimating the impact of large-scale mining on local communities in sub-Saharan Africa," Development Southern Africa, Taylor & Francis Journals, vol. 40(5), pages 1067-1085, September.
    10. Kebede, Hundanol A., 2024. "Gains from market integration: Welfare effects of new rural roads in Ethiopia," Journal of Development Economics, Elsevier, vol. 168(C).
    11. Ben Brunckhorst, 2020. "Rural Mobility and Climate Vulnerability: Evidence from the 2015 Drought in Ethiopia," CSAE Working Paper Series 2020-17, Centre for the Study of African Economies, University of Oxford.
    12. Suchi Kapoor Malhotra & Howard White & Nina Ashley O. Dela Cruz & Ashrita Saran & John Eyers & Denny John & Ella Beveridge & Nina Blöndal, 2021. "Studies of the effectiveness of transport sector interventions in low‐ and middle‐income countries: An evidence and gap map," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    13. World Bank, 2020. "Ethiopia Poverty Assessment," World Bank Publications - Reports 33544, The World Bank Group.
    14. Tesfahun, Birhan S. & Kasie, A. & Upton, Joanna B. & Blom, Sylvia A., 2021. "Climate Shocks And Resilience: Evidence From Rural Ethiopia," PRCI Research Papers 321060, Michigan State University, Department of Agricultural, Food and Resource Economics, Food Security Group.

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