Impact of Roads on Income and Consumption of Rural Households in West Bengal

Abstract

In several studies it has been observed that public goods like roads indirectly play a key role in the development process through multiplier effects in the long run, it effects positively not only in economic aspects but also in social aspects. This holds true for both urban and rural areas. It has been found in many cases how rural road connectivity acts as a driver of socioeconomic development and poverty reduction. In many studies it has been found that lack of roads constraints the access of rural people to markets leading to a reduction in income and consumption. In view of this, an attempt has been made in this study to consider the impact of rural roads on income and consumption of the households in West Bengal. It has been found that better roads and railway systems lead to access and opportunities leading to diversified livelihood and accordingly diversified income are generated. The study also reveals that there is both quantitative and qualitative divergence in employment of the households between near and away from main road and rail station leading to a diversified income which in turn has a significant effect on the consumption expenditure of the rural households. The Gini coefficient is higher in case of those households near to main roads and rail station as well as a statistically significant higher group means for monthly income as well as consumption expenditure of those households reflecting a diversified rural livelihoods mainly because of better access to public assets like rural roads and implying a variation and heterogeneity in income and consumption.