Income, Consumption and Poverty Impact of Infrastructure Development

The paper analyzes the impact of the development of transport and trading infrastructures, such as rural roads and markets, on income, consumption and poverty in Bangladesh. Household level panel data collected in two phases have been used in the analysis. The benchmark survey was carried out during December 1995 to April 1996, just before the physical implementation of the development works. The follow-up survey was conducted during January to May 2000, three years after completion of the physical works. In order to capture the impact, both bivariate and multiple regression analyses have been done taking into consideration both 'with-without' and 'before-after' situations. The results suggest that there has been significant positive impact of the development of transport and trading networks on income, consumption and poverty alleviation. The government should expand infrastructure development projects in other areas of Bangladesh where such development works have not yet been implemented.