Analyzing the Impact of Road Infrastructure Spending on Rural Household Welfare (Food Security) in Laos: A Comparison of DID and PSM-DID Approaches
Author (s)
Keothephar Keoudone & Hangtian Xu
Abstract
To investigate the effects of road infrastructure investments on rural household welfare, this study combines DID analysis with Propensity Score Matching (PSM) and Difference-in-Differences (DID). Initial DID results point to a non-significant impact of road infrastructure investment on household well-being; however, PSM-DID analysis yields different conclusions. The non-significant DID results show a possible mismatch between theoretical predictions and actual results, challenging preconceived notions and contradicting empirical data. Nonetheless, the next PSM-DID analysis shows that investments in road infrastructure have a notable and beneficial effect on household welfare, especially when it comes to real food spending per capita. These findings highlight the need to use reliable approaches to precisely evaluate the effects of infrastructure investments. Furthermore, well-being is favorably influenced by control variables including household business, education, and urbanization. Welfare, however, is adversely affected by the size of the home and the number of individuals residing there. These results underline the complexity of rural development and the need for more study to fully comprehend the intricate relationships between these factors.
Keywords: Road infrastructure investment, Rural household welfare, Difference-in-differences, Propensity score matching, Laos.
| Title: | Analyzing the Impact of Road Infrastructure Spending on Rural Household Welfare (Food Security) in Laos: A Comparison of DID and PSM-DID Approaches |
|---|---|
| Author: | Keothephar Keoudone & Hangtian Xu |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2357 |
| Media: | Online |
| Volume: | 35 |
| Issue: | 1 |
| Issue publication (Year): | 2024 |
| Acceptance Date: | 10/04/2024 |
| Date of Publication: | 20/04/2024 |
| PDF URL: | https://ijsab.com/wp-content/uploads/2357.pdf |
| Free download: | Available |
| Page: | 84-95 |
| First Page: | 84 |
| Last Page: | 95 |
| Paper Type: | Research paper |
| Current Status: | Published |
Cite This Article:
Keothephar Keoudone & Hangtian Xu (2024). Analyzing the Impact of Road Infrastructure Spending on Rural Household Welfare (Food Security) in Laos: A Comparison of DID and PSM-DID Approaches. International Journal of Science and Business, 35(1), 84-95. DOI: https://doi.org/10.58970/IJSB.2357
Retrieved from https://ijsab.com/wp-content/uploads/2357.pdf
About Author (s)
Keothephar Keoudone (Corresponding author), School of Economics and Trade, Hunan University, Changsha, China.
Hangtian Xu, School of Economics and Trade, Hunan University, Changsha, China.
DOI: https://doi.org/10.58970/IJSB.2357