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How road improvement reduces poverty: the case of Laos

Author:
Warr, Peter
Source:
Agricultural economics 2008 v.39 no.3 pp. 269-279
ISSN:
0169-5150
Subject:
dry season, household surveys, models, poverty, rural roads, villages, weather, Laos
Abstract:
A general equilibrium modeling approach is used to study the effect that rural road improvement has on poverty incidence in Laos. Household survey data are used to distinguish three categories of rural villages according to their road access: (i) no vehicular access; (ii) dry season only access; and (iii) all weather access. A general equilibrium model of the Lao economy is then used to simulate, first, the effect of upgrading category (i) to category (ii) roads, and second, category (ii) to category (iii) roads. The former has a larger poverty-reducing effect but is also more costly.
Agid:
2174636