Access to Markets and the Benefits of Rural Roads

Posted: 23 Jan 2001

See all articles by Hanan G. Jacoby

Hanan G. Jacoby

World Bank - Agriculture and Rural Development Department; World Bank - Development Research Group (DECRG)

Abstract

Roads play a central role in rural development, yet little is known about the size and distribution of benefits from such investments. This paper develops a method for estimating household-level benefits from road projects using the relationship between the value of farmland and its distance to agricultural markets. The empirical analysis, using data from Nepal, suggests that providing extensive road access to markets would confer substantial benefits on average, much of these going to poor households. However, the benefits would not be large enough or targeted efficiently enough to appreciably reduce income inequality in the population.

JEL Classification: O14, O18

Suggested Citation

Jacoby, Hanan G., Access to Markets and the Benefits of Rural Roads. Available at SSRN: https://ssrn.com/abstract=236210

Hanan G. Jacoby (Contact Author)

World Bank - Agriculture and Rural Development Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/hjacoby

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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