ASSESSING THE IMPACT OF IMPROVED RURAL ROADS ON HOUSEHOLD INCOME, CONSUMPTION, AND POVERTY REDUCTION IN NIGERIA

Abstract

This study examines the impact of improved rural roads on household income, consumption, and poverty alleviation. Rural infrastructure development plays a pivotal role in enhancing economic opportunities, yet gaps persist in understanding its specific contributions to socioeconomic outcomes. The research aims to evaluate how investments in rural road networks influence income levels, consumption patterns, and poverty reduction in rural communities. Using a dynamic econometric approach, the study employed the Autoregressive Distributed Lag (ARDL) model to analyze secondary data from reliable national and international databases. Preliminary unit root tests revealed that variables were integrated of orders zero and one, validating the ARDL approach. The findings highlight a positive correlation between rural road improvements and household income, driven by reduced transportation costs and enhanced market access. Similarly, the results reveal significant reductions in poverty levels linked to road infrastructure investments, consistent with existing literature. In the short run, immediate gains were observed in income and consumption due to capital expenditure. The long-run error correction term underscored robust equilibrium adjustment mechanisms. However, the results also emphasized the need for sustained road maintenance to ensure lasting benefits. The study concludes that rural road investments significantly contribute to poverty alleviation and economic growth. It recommends increased fiscal allocations, stable interest rates, and complementary agricultural productivity policies to maximize outcomes. Future research should explore the role of community involvement and technology integration in rural road projects.