**Table 7: Survey of selected papers on the development impact of reliable power supplies**

|**Author**|**Level of**<br>**Analysis**|**Country/**<br>**Region**|**Indicator of**<br>**Development**|**Main Findings**|
|---|---|---|---|---|
|Zhang & Ji<br>(2018)*+|Province|China|Firm<br>Productivity|More power plants should have been built in China, considering<br>trade-offs between environmental costs and economic benefits.|
|Fisher-Vanden et al<br>(2015) *+|Firm|China|Production<br>Costs|Firms in regions most affected by shortages decreased factor shares<br>of electricity and increased factor shares of materials.|
|Grainger & Zhang<br>(2019) *|Firm|Pakistan|Firm<br>Productivity|An extra daily hour of unexpected outages decreases annual<br>revenues and value-added and increases the labor share of output.|
|Mensah (2018)+|Firm|Africa|Jobs/ Firm<br>Productivity|Electricity shortages reduce employment chances of workers and<br>depress firms’ total factor productivity by 2.3 percent.|
|Alby et al (2013) *|Firm|Cross-<br>Country|Firm Size|Electricity-intensive sectors in high-outage countries are<br>characterized by a significantly lower share of small firms.|
|Samad & Zhang<br>(2017)+|Household|Bangladesh|Income|An hour increase in power outages leads to a 0.3% drop in household<br>income, after 21 hours of outages no benefit from electrification|

Source: Compiled by the authors.

Note: Findings column is based on the main finding of the paper. An asterisk identifies peer-reviewed papers. Plus identifies papers following the instrumental variable approach.

# **5. Development Impacts of Transportation Infrastructure**

<mark>Studies show that efficient and extensive infrastructure in the transport sector is an important component of development outcomes in high-income countries. Investments in transportation positively support output, employment, and city/regional growth. For instance, a 1 percent increase in road accessibility leads to a 0.3 to 0.5 percent increase in establishments and employment in Britain (Gibbons et al, 2019). Duranton and Turner (2012) find that the stock of highways in a city contributed to the growth in city population in the United States between 1980 and 2000. Similarly, Garcia-Lopez et al (2015) find that highways cause about the same rate of population growth in Spanish cities.</mark> This section discusses the size and distribution of benefits from transport investments in developing countries. It shows that investments in the transport sector are key to promoting economic growth and spreading growth geographically by lowering trade costs (e.g., Donaldson, 2018; Martincus et al, 2013), accelerating firm growth (e.g., Datta, 2012; Lu, 2020), enhancing competition (e.g., Asturias et al, 2019; Brooks et al, 2021), expanding agricultural productivity as well as farm and non-farm production (e.g., Aggarwal et al, 2018; Binswanger et al, 1993; Levy, 1996), expanding trade (e.g., Buys et al, 2010; Martincus and Blyde, 2013 ), increasing welfare and reducing poverty (e.g., Ali et al, 2015; Gonzalez-Navarro and Quintana-Domeque, 2016); in addition to enabling commuting by workers (e.g., Asher and Novosad, 2020). These studies are grouped into five main sub-categories based on their sub-sectoral focus: rural roads, trunk roads, 23