Complementarities in Infrastructure: Evidence from Rural India
52 Pages Posted: 14 May 2021
Date Written: May 2021
Complementarities between infrastructure projects have been understudied. Our paper examines interactions in the impacts of large-scale road construction, electrification, and mobile phone coverage programs in rural India. We find strong evidence of complementary impacts between roads and electricity on agricultural production: dry season cropping increases significantly when villages receive both, but not when they receive one without the other. These complementarities are associated with a shift of cropping patterns towards market crops and with improved economic conditions. In contrast, we find no consistent evidence of complementarities for the mobile coverage program.
JEL Classification: O13, O18, Q15
Suggested Citation: Suggested Citation