[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108931-en":3,"doc-seo-108931-105":31,"detail-sidebar-cat-0-en-105":93},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},108931,13056703019662,"Evangeline","https://ap-avatar.wpscdn.com/avatar/be000253a8e92610077?_k=1778726343310543188",8,"Research & Report","Horn of Africa Regional Economic Memorandum Background Paper 4 - Infrastructure and Structural Change - Abstract and Contents","Access to infrastructure underpins economic development through capital accumulation and structural transformation, shaping how workers move into higher-productivity employment. This background paper examines how investments in electricity, Internet, and road infrastructure—separately and in combination—affect development across the Horn of Africa. Reduced-form estimates link network expansion to changes in the sectoral composition of employment. A spatial general equilibrium model quantifies welfare and spatial effects of future transport investments and trade facilitation policies for the region and its subregions.","Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized  \n© 2021 The International Bank for Reconstruction and Development/THE WORLD BANK  \n1818 H Street NW  \nWashington, DC 20433  \nUSA  \nAll rights reserved  \nPhotos: Shutterstock and Unsplash.  \nHORN OF AFRICA REGIONAL ECONOMIC MEMORANDUM BACKGROUND PAPER 4  \nInfrastructure and Structural Change  \n-Matias Herrera Dappe and Mathilde Lebrand*  \n* World Bank ([mlebrand@worldbank.org](mlebrand@worldbank.org)) . We thank Kezhou Miao and Han Byul Lee for excellent research assistance, Niclas Moneke and Immo Schott for their guidance, participants at workshops for helpful comments, and Alice Duhaut and Kevin Croke for their help with the data.  \niv  \nABSTRACT  \nAccess to infrastructure support economic development through both capital accumulation and structural transformation. This paper investigates the links between investments in electricity, Internet, and road infrastructure, in isolation and bundled, and economic development in the Horn of Africa, a region that includes countries with different levels of infrastructure and economic development. Using data on the expansion of the road, electricity, and Internet networks, it provides reduced-form estimates of the impacts of infrastructure investments on the sectoral composition of employment. It uses a spatial general equilibrium model, based on Moneke (2020), to quantify the impacts of future transport investments and trade facilitation measures on economic development in the Horn of Africa countries.  \nKeywords: Infrastructure, general equilibrium, transport corridors, structural change  \nJEL Classification: F15, J24, L16, O13, O14, O18, Q41, R1  \nvi  \nCONTENTS  \n1 Introduction ............................................................................................................................................. 1  \n2 Background .............................................................................................................................................. 3  \n3 Data ...................................................................................................................................................................... 5  \n4 Empirical Strategy and Results ................................................................................... 9  \n4.1 Ordinary Least Squares ............................................................................................ 9  \n4.2 Instrumental Variables ............................................................................................... 15  \n5 Welfare Impacts of Infrastructure .......................................................................... 19  \n5.1 The Model ................................................................................................................................... 19  \n5.2 Calibration of the Model ........................................................................................ 22  \n5.3 New transport infrastructure in the Horn of Africa .............. 24  \n5.3.1 Calibration of counterfactuals ................................................. 26  \n5.3.2 Welfare impacts ............................................................................................ 26  \n5.3.3 Spatial impacts ................................................................................................ 27  \nConclusion ................................................................................................................................................ 31  \nReferences ................................................................................................................................................. 32  \nvii  \nviii  \nSECTION 1 | INTRODUCTION  \nSECTION 1  \nIntroduction  \nInfrastructure investments can support economic development through both capital accumulation and structural transformation.1 Structural change—the movement of workers from lower- to hi","cbCaidIbjRgVX2dB","https://ap.wps.com/l/cbCaidIbjRgVX2dB","pdf",7792667,5,1,48,"English","en",105,"# Introduction\n## Background\n## Data\n## Empirical Strategy and Results\n## Welfare Impacts of Infrastructure\n## Conclusion\n## References","[{\"question\":\"How does the paper explain the role of infrastructure in economic development?\",\"answer\":\"It argues that infrastructure supports development via capital accumulation and structural transformation. Improved transport reduces frictions, and electricity and Internet enable modern production technologies that raise firm productivity.\"},{\"question\":\"What infrastructure types does the study analyze?\",\"answer\":\"The paper focuses on investments in electricity, Internet, and road infrastructure, considering both isolated investments and bundled combinations.\"},{\"question\":\"How are economic effects estimated in this work?\",\"answer\":\"It uses reduced-form analysis to study links between past infrastructure investments and employment structure. It then applies a spatial general equilibrium model to quantify aggregate and spatial impacts of future transport investments and trade facilitation measures.\"}]","Horn of Africa Regional Economic Memorandum Background Paper 4 - Infrastructure and Structural Change - Abstract and Contents | PDF",1784475140,121,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":88,"head_meta":90,"extra_data":92,"updated_unix":29},"horn-of-africa-regional-economic-memorandum-background-paper-4-infrastructure-and-structural-change-abstract-and-contents","",{"@graph":37,"@context":87},[38,55,70],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":54},"https://docshare.wps.com/document/horn-of-africa-regional-economic-memorandum-background-paper-4-infrastructure-and-structural-change-abstract-and-contents/108931/",4,{"url":53,"name":13,"@type":56,"author":57,"headline":13,"publisher":59,"fileFormat":62,"inLanguage":24,"description":14,"dateModified":63,"datePublished":64,"encodingFormat":62,"isAccessibleForFree":65,"interactionStatistic":66},"DigitalDocument",{"name":9,"@type":58},"Person",{"url":42,"name":60,"@type":61},"DocShare","Organization","application/pdf","2026-07-29","2026-07-19",true,{"@type":67,"interactionType":68,"userInteractionCount":20},"InteractionCounter",{"@type":69},"ViewAction",{"@type":71,"mainEntity":72},"FAQPage",[73,79,83],{"name":74,"@type":75,"acceptedAnswer":76},"How does the paper explain the role of infrastructure in economic development?","Question",{"text":77,"@type":78},"It argues that infrastructure supports development via capital accumulation and structural transformation. Improved transport reduces frictions, and electricity and Internet enable modern production technologies that raise firm productivity.","Answer",{"name":80,"@type":75,"acceptedAnswer":81},"What infrastructure types does the study analyze?",{"text":82,"@type":78},"The paper focuses on investments in electricity, Internet, and road infrastructure, considering both isolated investments and bundled combinations.",{"name":84,"@type":75,"acceptedAnswer":85},"How are economic effects estimated in this work?",{"text":86,"@type":78},"It uses reduced-form analysis to study links between past infrastructure investments and employment structure. 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