Connectivity and Rural Development: Examining India’s Rural Road Construction Scheme
Author(s): Santosh Kumar Gautam, Monica Shandal, Ariel Zucker
Mar 03, 2025 | Working Paper
Abstract
We examine the impact of rural road connectivity on economic and social outcomes in the
context of India’s PMGSY, the world’s largest rural road program. Using a novel village-level
survey explicitly designed around PMGSY’s rollout, we exploit quasi-random variation in
road placement to estimate causal effects. We find that roads increase producer prices by
1.4 SD, reduce consumer prices by 0.6 SD, shift labor from agriculture to local casual work,
and decrease short-term migration. Additionally, road connectivity improves governance,
delays marriages, and improves wedding quality. Our findings highlight the role of
infrastructure in shaping rural economies and social institutions.
Locations
- India