Does the Accession of Road Reduce the Poverty? Evidence from Northern, Central, and Southern Parts of Lao PDR

Oulay Phadouangdeth (), Sounthone Phommason, Phouphet Kyophilavong and Inpaeng Sayvaya
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Oulay Phadouangdeth: Planning and Cooperation Department, Ministry of Public Works and Transport, Laos
Inpaeng Sayvaya: National University of Laos, Laos

International Journal of Economics and Empirical Research (IJEER), 2014, vol. 2, issue 9, 377-386

Abstract: The purpose of this study is to examine the impact of road access at rainy season on poverty reduction in Lao PDR, by considering the effect of road access at rainy season on real expenditure per capita level in Northern, Central, Southern and Vientiane capital based on data from Lao expenditure and Consumption Survey (LECS4) in the 2007/08. We used the multiple regression analysis to prove the impact. The result shows that road access at rainy seasons has a significant positive impact on real expenditure per capita. We concluded that road access would allow farmers all season access to urban markets and expand agricultural production by improving productivity and would help to reduce poverty, especially in the central part and Vientiane capital. This study suggests that policy makers or private agencies should invest more on improving road in rural areas to link between rural and urban markets for expanding agricultural production, to reduce poverty and to achieve MDGs by 2015.

Keywords: Road access; poverty reduction (search for similar items in EconPapers)
JEL-codes: L92 P46 (search for similar items in EconPapers)
Date: 2014
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