Impact of Quality of Road Infrastructure on Access to Credit for Family Farmers in Brazil: Examining the Improvements of BR-163

Paige Dvorak

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: This study investigates the relationship between the quality of road infrastructure and access to rural credit for family farmers in Brazil. Informed by a comprehensive literature review, my research aims to provide empirical evidence on the influence of road infrastructure quality on credit accessibility, focusing on the changes in Brazil’s federal highway BR-163. Using national-level data and differences and differences analysis, I find that improved roads may encourage farmers to seek credit for long-term investments over short-term costs and that farmers allocate credit differently depending on pre-existing conditions and proximity to improved roads.

Date: 2025-02-17
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