JUE insight: infrastructure and finance: evidence from India’s GQ highway network
File(s)
Accepted version
Author(s)
Das, Abhiman
Ghani, Ejaz
Grover, Arti
Kerr, William
Nanda, Ramana
Type
Journal Article
Abstract
We use data from Reserve Bank of India to study the impact of India’s Golden Quadrilateral (GQ) highway project on finance-dependent activity. Loan volumes increase by 20%–30% in districts along GQ and are stronger in industries more dependent upon external finance. Loan growth begins with increases in average branch size and in places with more pre-GQ loan activity. New branch openings come later, consistent with short-run adjustment costs to expanding branch networks. These patterns are not evident in placebo tests using delayed investments in NS-EW highways. Results suggest the depth of initial financial infrastructure shapes how infrastructure investments impact localities.
Date Issued
2024-07-01
Date Acceptance
2023-08-08
Citation
Journal of Urban Economics, 2024, 142
ISSN
0094-1190
Publisher
Elsevier
Journal / Book Title
Journal of Urban Economics
Volume
142
Copyright Statement
Copyright © Elsevier Ltd. All rights reserved. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/
Identifier
http://dx.doi.org/10.1016/j.jue.2023.103593
Publication Status
Published
Rights Embargo Date
2025-09-08
Article Number
103593
Date Publish Online
2023-09-09