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Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. Umid Abidhadjaev is a research associate at ADBI.The authors would like to thank Georg Inderst, Sahoko Kaji, Khalilillo Khamidov, Marie Lall, Colin McKenzie, Masao Ogaki, Alfredo Pereira, Victor Pontines, and Michael Regan, as well as the participants of the Public Economics Seminar at Keio University, the AICILS conference at the University of Oxford, and the ICHE conference at Cornell University for their comments and meaningful contributions to earlier discussion of the results of the current research. Umid Abidhadjaev would also like to acknowledge the financial support provided by the Head Office of the Research Development and Sponsored Programs at Keio University under the Keio University Doctorate Student Grant-in-Aid Program.The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan
AbstractThe objective of this paper is to examine the nature and magnitude of the effects of infrastructure provision on regional economic performance. The empirical evidence of our analysis is based on difference-in-difference estimation linking the changes in the growth rate of regional-level economic outcomes in affected regions to the newly built railway connection in the southern part of Uzbekistan, conditioned on the regions' timeinvariant individual effects, time-varying covariates, and evolving economic characteristics. To explore the differential nature of infrastructure provision, we employ an estimation examining re...