The Effect of Rural Road Access on Rural Households Livelihood Improvement: Evidence from Selected Weredas in Amhara Regional State, Ethiopia

Abstract

The development of appropriate road infrastructure is fundamental to economic growth and poverty reduction. Rural roads, especially, are especially important for economic development in rural areas. Against this background, this study aims at investigating the effect of rural road access on rural households’ livelihood improvement. Concerning the methodology, mixed research approach involving descriptive and explanatory designs was used. This study compares (using propensity score matching techniques) households located in Keble’s with road access to suitable controls. The descriptive analysis reveals that rural roads provide enhanced access to markets for inputs such as fertilizers and improved seeds, enable households to sell their produce to nearby markets, and allow to achieve additional non-farm employment opportunities, leading to a rise in income and reduce poverty. The results from econometrics analysis shows that road access positively and significantly improved the livelihood of households as measured by the livelihoods asset capital index. On the basis of their propensity score, the mean difference in the livelihood assets index between households located in Keble’s with road access and non-accessible household’s ranges up to 6% after matching. The results also indicated that women who are employed during road construction, on average, have 25% to 37% higher empowerment level than those who are not employed. This strengthens the argument for making efforts towards gender mainstreaming during rural road construction and greater engagement of women in road planning and implementation.