The Poverty Impact of Rural Roads: Evidence from Bangladesh

A rationale for public investment in rural roads is that households can better exploit agricultural and nonagricultural opportunities to employ labor and capital more efficiently. Significant knowledge gaps persist, however, as to how opportunities provided by roads actually filter back into household outcomes as well as distributional consequences. This study examines the impacts of two rural road‐paving projects in Bangladesh using a new quasi‐experimental household panel data set surveying project and control villages before and after program implementation. A household panel fixed‐effects methodology controlling for initial area conditions is used to estimate the impact of paved roads on household and individual outcomes and account for potential bias in program placement at the village level. Rural road investments are found to…