DP16139 Complementarities in Infrastructure: Evidence from Rural India
|Author(s):||Oliver Vanden Eynde, Liam Wren-Lewis|
|Publication Date:||May 2021|
|Keyword(s):||Agriculture, complementarities, infrastructure|
|JEL(s):||O13, O18, Q15|
|Programme Areas:||Public Economics, Development Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=16139|
Complementarities between infrastructure projects have been understudied. Our paper examines interactions in the impacts of large-scale road construction, electrification, and mobile phone coverage programs in rural India. We find strong evidence of complementary impacts between roads and electricity on agricultural production: dry season cropping increases significantly when villages receive both, but not when they receive one without the other. These complementarities are associated with a shift of cropping patterns towards market crops and with improved economic conditions. In contrast, we find no consistent evidence of complementarities for the mobile coverage program.