Publication:
Transport Infrastructure and Welfare: An Application to Nigeria

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dc.contributor.authorAli, Rubaba
dc.contributor.authorBarra, Alvaro Federico
dc.contributor.authorBerg, Claudia N.
dc.contributor.authorDamania, Richard
dc.contributor.authorNash, John
dc.contributor.authorRuss, Jason
dc.date.accessioned2015-06-02T21:28:30Z
dc.date.available2015-06-02T21:28:30Z
dc.date.issued2015-05
dc.description.abstractTransport infrastructure is deemed to be central to development and consumes a large fraction of the development assistance envelope. Yet there is debate about the economic impact of road projects. This paper proposes an approach to assess the differential development impacts of alternative road construction and prioritize various proposals, using Nigeria as a case study. Recognizing that there is no perfect measure of economic well-being, a variety of outcome metrics are used, including crop revenue, livestock revenue, non-agricultural income, the probability of being multi-dimensionally poor, and local gross domestic product for Nigeria. Although the measure of transport is the most accurate possible, it is still endogenous because of the nonrandom placement of road infrastructure. This endogeneity is addressed using a seemingly novel instrumental variable termed the natural path: the time it would take to walk along the most logical route connecting two points without taking into account other, bias-causing economic benefits. Further, the analysis considers the potential endogeneity from nonrandom placement of households and markets through carefully chosen control variables. It finds that reducing transportation costs in Nigeria will increase crop revenue, non-agricultural income, the wealth index, and local gross domestic product. Livestock sales increase as well, although this finding is less robust. The probability of being multi-dimensionally poor will decrease. The results also cast light on income diversification and structural changes that may arise. These findings are robust to relaxing the exclusion restriction. The paper also demonstrates how to prioritize alternative road programs by comparing the expected development impacts of alternative New Partnership for Africas Development projects.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/05/24498118/transport-infrastructure-welfare-application-nigeria
dc.identifier.doi10.1596/1813-9450-7271
dc.identifier.urihttps://hdl.handle.net/10986/22004
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7271
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectLIVING STANDARDS
dc.subjectSANITATION
dc.subjectFORECASTS
dc.subjectTOTAL REVENUE
dc.subjectFREIGHT SERVICES
dc.subjectPRICE OF FUEL
dc.subjectINCOME
dc.subjectINTEREST
dc.subjectVEHICLE SPEED
dc.subjectEXPECTATIONS
dc.subjectTRANSPORT INFRASTRUCTURE
dc.subjectPUBLIC ROAD
dc.subjectURBAN ROAD
dc.subjectTRANSPORTATION COSTS
dc.subjectROUND TRIP
dc.subjectFREIGHT TRANSPORT
dc.subjectTRANSPORT INFRASTRUCTURES
dc.subjectEXPORTS
dc.subjectELASTICITY
dc.subjectECONOMIC STRUCTURE
dc.subjectWELFARE
dc.subjectTRAVEL SPEED
dc.subjectVARIABLES
dc.subjectIMPACT OF TRANSPORT COSTS
dc.subjectHIGHWAY SYSTEM
dc.subjectROAD INFRASTRUCTURE
dc.subjectROUTES
dc.subjectWEALTH
dc.subjectTRANSPORT SERVICES
dc.subjectTRANSPORT INVESTMENT
dc.subjectTRANSPORTATION INFRASTRUCTURE
dc.subjectROAD TYPE
dc.subjectTRAVEL COSTS
dc.subjectDEVELOPMENT
dc.subjectECONOMIC ACTIVITY
dc.subjectVEHICLE
dc.subjectINFLUENCE
dc.subjectTRANSPORT INVESTMENTS
dc.subjectROAD
dc.subjectCOSTS
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectINFRASTRUCTURE REFORM
dc.subjectMAXIMUM LIKELIHOOD ESTIMATION
dc.subjectROAD NETWORK
dc.subjectECONOMIC BENEFITS
dc.subjectTRANSPORT
dc.subjectIMPACT OF TRANSPORT
dc.subjectINTERSTATE HIGHWAY SYSTEM
dc.subjectCOST ELASTICITIES
dc.subjectPRODUCTIVITY
dc.subjectINDUSTRIALIZATION
dc.subjectMARKETS
dc.subjectTRUE
dc.subjectHIGHWAY IMPROVEMENT
dc.subjectLENGTH OF ROAD
dc.subjectTRANSPORT FACILITIES
dc.subjectROAD IMPROVEMENT
dc.subjectTRAVEL TIMES
dc.subjectRURAL ROADS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectCAPITAL INVESTMENTS
dc.subjectINVENTORY
dc.subjectROUTE
dc.subjectROAD QUALITY
dc.subjectINFRASTRUCTURE
dc.subjectSUSTAINABLE TRANSPORT
dc.subjectPRODUCTIVITY GROWTH
dc.subjectHUMAN CAPITAL
dc.subjectROAD TYPES
dc.subjectOPPORTUNITY COST
dc.subjectTRAVEL
dc.subjectTRANSPORTATION
dc.subjectECONOMIC PERFORMANCE
dc.subjectWAGES
dc.subjectMODE OF TRANSPORTATION
dc.subjectCARS
dc.subjectVALUE
dc.subjectCREDIT
dc.subjectELASTICITIES
dc.subjectINFRASTRUCTURE REHABILITATION
dc.subjectACCESSIBILITY
dc.subjectDIRECT ROUTES
dc.subjectAGRICULTURE
dc.subjectECONOMIC EFFICIENCY
dc.subjectDECISION MAKING
dc.subjectMEASUREMENT
dc.subjectBENCHMARK
dc.subjectINFRASTRUCTURE PROJECTS
dc.subjectROAD PROJECTS
dc.subjectHIGHWAYS
dc.subjectECONOMIC THEORY
dc.subjectHIGHWAY INFRASTRUCTURE
dc.subjectROAD USER
dc.subjectREGRESSION ANALYSIS
dc.subjectROADS
dc.subjectCAR
dc.subjectWALKING
dc.subjectHIGHWAY ADMINISTRATION
dc.subjectHIGHWAY
dc.subjectTRADE
dc.subjectRAILWAYS
dc.subjectTRAVEL DISTANCE
dc.subjectGDP
dc.subjectVEHICLE COST
dc.subjectGOODS
dc.subjectTHEORY
dc.subjectTRANSPORTATION COST
dc.subjectINVESTMENT
dc.subjectAGGLOMERATION ECONOMIES
dc.subjectRAILROADS
dc.subjectFUEL
dc.subjectTRIP
dc.subjectREVENUE
dc.subjectINVESTMENTS
dc.subjectUNDERESTIMATES
dc.subjectSTATISTICAL ANALYSIS
dc.subjectROAD INVESTMENT
dc.subjectECONOMIC GEOGRAPHY
dc.subjectURBAN ROADS
dc.subjectDEVELOPMENT PROJECTS
dc.subjectTRANSPORT COSTS
dc.subjectOUTCOMES
dc.subjectROAD TRANSPORT
dc.subjectTRAVEL TIME
dc.subjectHIGHWAY CAPITAL
dc.subjectFUEL COST
dc.subjectFREIGHT
dc.subjectINFRASTRUCTURES
dc.subjectBENEFITS
dc.subjectDEVELOPMENT POLICY
dc.titleTransport Infrastructure and Welfareen
dc.title.subtitleAn Application to Nigeriaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleTransport Infrastructure and Welfare: An Application to Nigeria
okr.date.disclosure2015-05-18
okr.date.doiregistration2025-04-10T10:34:02.243976Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2015/05/24498118/transport-infrastructure-welfare-application-nigeria
okr.globalpracticeTransport and ICT
okr.globalpracticeAgriculture
okr.guid519511468189240918
okr.identifier.doi10.1596/1813-9450-7271
okr.identifier.externaldocumentum090224b082e9bb99_2_0
okr.identifier.internaldocumentum24498118
okr.identifier.reportWPS7271
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/05/18/090224b082e9bb99/2_0/Rendered/PDF/Transport0infr0plication0to0Nigeria.pdfen
okr.region.administrativeAfrica
okr.region.countryNigeria
okr.topicRoads and Highways Performance
okr.topicTransport Economics Policy Planning
okr.topicTransport
okr.topicRural Development
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicRural Development::Rural Roads & Transport
okr.unitAgriculture Global Practice Group
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