Rural Roads and Local Economic Development in China

Yajie Han, Nino Pkhikidze, Yu Qin and Yi Yang

No 11212, Policy Research Working Paper Series from The World Bank

Abstract: Rural roads, serving as vital links between remote areas and economic centers, play an indispensable role in rural development. This paper investigates the relationship between rural road development and various economic outcomes in China from 2008 to 2021. Based on comprehensive novel road network data, satellite nighttime light images, county-level statistics, and household-level survey data, analyses are conducted at multiple levels. At the grid level, the findings show a consistent positive correlation between rural road mileage and nighttime light intensity, suggesting that road development fosters the growth of economic activity. The correlation is more pronounced in plains than in mountainous areas and is stronger for roads of higher quality. Economic prosperity and population size further enhance the economic benefits of rural roads. Additionally, the analysis finds significant links between rural road development and key metrics such as population growth, agricultural production, and the income and consumption of rural households.

Date: 2025-09-08
New Economics Papers: this item is included in nep-cna, nep-sea and nep-tre
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