Complementarities in Infrastructure: Evidence from Rural India

52 Pages Posted: 14 May 2021

See all articles by Oliver Vanden Eynde

Oliver Vanden Eynde

London School of Economics & Political Science (LSE)

Liam Wren-Lewis

Paris School of Economics (PSE); INRAE INSTIT

Date Written: May 2021

Abstract

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

Vanden Eynde, Oliver and Wren-Lewis, Liam, Complementarities in Infrastructure: Evidence from Rural India (May 2021). CEPR Discussion Paper No. DP16139, Available at SSRN: https://ssrn.com/abstract=3846252

Oliver Vanden Eynde (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Liam Wren-Lewis

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

INRAE INSTIT ( email )

France

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