中国农村公路与地方经济发展（英）

11212 Rural Roads and Local EconomicDevelopment in China Yajie HanNino PkhikidzeYu QinYi Yang Policy Research Working Paper11212 Abstract Rural roads, serving as vital links between remote areas andeconomic centers, play an indispensable role in rural devel-opment. This paper investigates the relationship betweenrural road development and various economic outcomes inChina from 2008 to 2021. Based on comprehensive novelroad network data, satellite nighttime light images, coun-ty-level statistics, and household-level survey data, analysesare conducted at multiple levels. At the grid level, the find-ings show a consistent positive correlation between ruralroad mileage and nighttime light intensity, suggesting that road development fosters the growth of economic activ-ity. The correlation is more pronounced in plains thanin mountainous areas and is stronger for roads of higherquality. Economic prosperity and population size furtherenhance the economic benefits of rural roads. Addition-ally, the analysis finds significant links between rural roaddevelopment and key metrics such as population growth,agricultural production, and the income and consumptionof rural households. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about developmentissues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry thenames of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely thoseof the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank andits affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Rural Roads and Local Economic Development in China* Yajie Hana, Nino Pkhikidzeb, Yu Qinc, and Yi Yangd Keywords:rural roads, local economic development, China, nighttime lights. JEL Classification: O18, R42, Q12, J43 1.Introduction Improved transportation infrastructure has been documented to contribute positively to variousoutcomes for households, firms, and the economy as a whole. These benefits include reductionsin trade costs and facilitation of resource reallocation between the agriculture and non-agriculture sectors, which in turn lead to increased employment and interregional trade andinvestment, as well as stimulation of local economies (Donaldson 2018; Lin et al. 2022; Faber2014; Lin 2017; Adamopoulos 2011; Qin 2016; Gao et al. 2020; Banerjee, Duflo, and Qian2020). Additionally, these improvements in infrastructure have been shown to raise incomelevels, stimulate consumption, and enhance quality of life(Adamopoulos 2011; Dercon et al.2009;Gonzalez-Navarro and Quintana-Domeque 2016,Pkhikidze,2024).Furthermore,improved transportation networks support the organizational and operational efficiency ofmanufacturing firms (Ghani, Goswami, and Kerr 2016). Although there is a substantial body of empirical research on the economic effects of generaltransportation infrastructure, such as highways, railways, and high-speed railways, the specificimpacts of rural roads have been less thoroughly examined. Rural roads are critical in boostingagricultural production, spurring economic growth, and improving livelihoods, especially indeveloping countries. The existing literature has largely focused on the impacts of rural roadson factors including market accessibility, agricultural productivity, employment, income,education,and health,with significant attention to countries like India and Ethiopia(Shamdasani 2021; Aggarwal 2018; Alder et al. 2022). These impacts are influenced by variouscontextual factors, such as existing infrastructure levels, economic structures, and policyenvironments, which may lead to heterogeneous economic effects across different regions. However, research on rural roads within the Chinese context is notably lacking, despitesubstantial investments in this area as part of broader rural development strategies. Over thepast two decades, China has been improving ‘last mile’ connectivity to integrate rural areaswith urban centers and essential services. The unique economic and policy environment ofChina—characterized by rapid economic growth, a vast population, significant povertyreduction efforts, and regional development disparities—significantly influences the outcomesand effectiveness of these rural road investments. Therefore, exploring the impacts of ruralroads within China’s distinct context fills this gap in the existing literature and enriches ourunderstanding of the broader implications of rural roads in developing countries. Combining detailed and high-resolution rural road network data from 2008 to 2021 withsatellite nighttime light data, county statistics, and household survey data, we examine therelationship between rural roads and e