Better roads, better off?: Evidence on improving roads in Tanzania

Christelle Dumas () and Ximena Jativa ()
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Christelle Dumas: UNIFR - Université de Fribourg = University of Fribourg
Ximena Jativa: UNICEF Headquarters

Working Papers from HAL

Abstract: Spatial isolation is considered as one of the main determinants of poverty. Therefore, many transport investments are undertaken with a stated objective of poverty reduction. In our paper, we evaluate a Tanzanian program that rehabilitated 2500km of major roads between 2008 and 2013. We deal with endogenous placement issues with a household fixed-effect strategy combined with a propensity score matching. Contrary to most studies, we find damaging effects of the road on the rural population: the price of the main product (rice) decreases, they reduce rice production and reallocate labor away from farm but opportunities of off-farm work are scarce. This results in depressed wages and households declare a lower satisfaction. This is consistent with a situation where rural households face an increased competition due to lower transportation costs.

Keywords: Roads; Poverty; Rural households; Africa (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-04532177

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