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The Impact of Road Development on Household Welfare in Rural Papua New Guinea

Author

Listed:
  • Martin Wiegand

    (VU Amsterdam)

  • Eric Koomen

    (VU Amsterdam)

  • Menno (M.) Pradhan

    (VU Amsterdam; University of Amsterdam, the Netherlands; Tinbergen Institute, The Netherlands)

  • Christopher Edmonds

    (Tokyo International University)

Abstract

In this paper we estimate the impact of road development on household welfare in rural Papua New Guinea over the period between 1996 and 2010, using two cross-sectional household surveys and corresponding road maps. To deal with endogenous placement of road infrastructure programs we employ a correlated random effects model that corrects for location-specific changes in road quality. We also use a newly developed quantile regression method to investigate whether road works are pro-poor. Estimates show that investments in sealing roads to nearest towns led to higher consumption levels and housing quality, and to less reliance on subsistence farming. Effects are stronger among poor, less educated, and female-led households.

Suggested Citation

  • Martin Wiegand & Eric Koomen & Menno (M.) Pradhan & Christopher Edmonds, 2017. "The Impact of Road Development on Household Welfare in Rural Papua New Guinea," Tinbergen Institute Discussion Papers 17-076/V, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20170076
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    Cited by:

    1. World Bank Group, 2020. "Papua New Guinea Economic Update, July 2020," World Bank Publications - Reports 34079, The World Bank Group.
    2. Emily Schmidt & Rachel Gilbert & Brian Holtemeyer & Kristi Mahrt, 2021. "Poverty analysis in the lowlands of Papua New Guinea underscores climate vulnerability and need for income flexibility," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 171-191, January.
    3. Angga Dwiartama & Zulfikar Ali Akbar & Rhino Ariefiansyah & Hendra Kurniawan Maury & Sari Ramadhan, 2024. "Conservation, Livelihoods, and Agrifood Systems in Papua and Jambi, Indonesia: A Case for Diverse Economies," Sustainability, MDPI, vol. 16(5), pages 1-30, February.
    4. 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.
    5. TANAKA,Kiyoyasu, 2024. "From Walking to Driving: Economic Impact of Mountain Roads," IDE Discussion Papers 949, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    roads; infrastructure; impact evaluation; household welfare; developing country; Papua New Guinea;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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