Estimating the impact of rural investments in Nepal

Andrew Dillon*, Manohar Sharma, Xiaobo Zhang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

26 Scopus citations


As a largely rural society, most people in Nepal still depend upon agriculture as their major livelihood strategy. Therefore, it is important to improve the allocation efficiency of limited public expenditures to promote agricultural growth and poverty reduction. However, evaluating the returns of public investment is limited by methodological challenges. We use hedonic and panel data methods to examine the returns to different types of rural public investments including roads, irrigation and extension advice. The use of diverse identification strategies reduces the risk of using a narrower set of results driven primarily by a particular methodology. We find that rural roads and irrigation are one of the most productive public expenditures according to the benefit-cost ratio calculations, though the magnitudes of these ratios depend on methodology.

Original languageEnglish (US)
Pages (from-to)250-258
Number of pages9
JournalFood Policy
Issue number2
StatePublished - Apr 2011


  • Agriculture
  • Public expenditure
  • Rural infrastructure

ASJC Scopus subject areas

  • Food Science
  • Development
  • Sociology and Political Science
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law


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