Bright investments: Measuring the impact of transport infrastructure using luminosity data in Haiti

We use non-traditional sources of data, mainly nightlight satellite luminosity data, as well as a detailed historical administrative information to evaluate the impacts of transport investments on economic activity in Haiti.... [ view full abstract ]

We use non-traditional sources of data, mainly nightlight satellite luminosity data, as well as a detailed historical administrative information to evaluate the impacts of transport investments on economic activity in Haiti. We define buffers of influence around road segments in the national road network and exploit the differential timing of road improvement interventions to estimate panel fixed effects models at the communal section and at one squared kilometer pixel-level. There are few applications of this type in the region and none in transport. The literature overall has also not approached this issue with such a micro-level analysis that allows a better understanding of the spatial distribution of effects and controlling for key unobservables. Preliminary results indicate that transport investments can have large impacts in luminosity values, which have been proved to be a good proxy of economic activity and development. Heterogeneous treatment effects confirm that impacts have been different across space and time, favoring the poorest areas and also those that are closer to the capital. Impacts do not appear immediately but take some years after the beginning of construction.