Effects of Investments in Road Infrastructure on Local Economic Dynamics
DOI:
https://doi.org/10.13037/gr.vol42.e20269688Keywords:
Caminhos da Paraíba; Avaliação de Impacto; Diferenças-em-Diferenças, qualidade de vida., políticas públicasAbstract
The research evaluates the impacts of investments in road infrastructure on indicators of economic activity and the job market in Paraíba. To this end, the Caminhos da Paraíba program was analyzed, which focused on improving the road network in Paraíba from 2011 onwards. The Differences in Differences method was used with reweighting by entropy balancing weights. The data comes from the Department of Highways for the period from 2011 to 2017. The description showed that the program has already invested more than R$1.7 billion with around 3,500 kilometers of improved highways and 65% of the municipalities in Paraíba benefited. The results of the econometric analysis indicated more significant impacts of the program on the employment balance, mainly in municipalities removed from isolation. Furthermore, there was an increase in real GDP (13%) and in GVA in the services sector (16%), both restricted to municipalities that received supplementary works.
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Copyright (c) 1969 OTONIEL RODRIGUES DOS ANJOS JUNIOR RODRIGUES, Stélio Coêlho Lombardi Filho, Aléssio Tony Cavalcanti de Almeida (Autor)
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