검색 상세

Infrastructure Investments and Rural Economic Growth : Evidence from the National Paved Road Expansion Program in Korea

한국 과거 포장도로망의 확산이 농촌 경제성장에 미친 효과의 실증적 분석

초록 (요약문)

How do transportation infrastructures transform economic activities in remote rural regions? This paper investigates this question by studying the large-scale paved road expansion in rural South Korea during the mid-to-late 20th century. I develop a novel machine-learning algorithm to digitize the entire inter-regional paved roads from historical maps and subsequently measure changes in rural area’s market access to cities. I find that the areas that witnessed greater advancements in market access now have lower levels of nightlight luminosity and fewer non-agricultural economic activities compared to other rural areas in the 1970s, whose market connections improved at a later stage. As a potential channel behind the relationship, I argue that the initial paved connection to cities provided a strong incentive for rural areas to specialize in agriculture through inter-regional trade. The results highlight the role of transportation infrastructures in facilitating inter-regional trade, in which regions face incentives to develop a comparative advantage in certain industries.

more