TY  - JOUR
AU  - Duflo,Esther
AU  - Pande,Rohini
TI  - Dams
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11711
PY  - 2005
Y2  - October 2005
UR  - http://www.nber.org/papers/w11711
L1  - http://www.nber.org/papers/w11711.pdf
N1  - Author contact info:
Esther Duflo
Department of Economics
MIT, E52-252G
50 Memorial Drive
Cambridge, MA 02142
Tel: 617/258-7013
Fax: 617/253-6915
E-Mail: eduflo@mit.edu

Rohini Pande
Kennedy School of Government
Harvard University
79 JFK Street
Cambridge, MA 02138
Tel: 617-384-5267
Fax: 617-496-8753
E-Mail: rohini_pande@harvard.edu
AB  - The construction of large dams is one of the most costly and controversial forms of public infrastructure investment in developing countries, but little is known about their impact.  This paper studies the productivity and distributional effects of large dams in India. To account for endogenous placement of dams we use GIS data and the fact that river gradient affects a district's suitability for dams to provide instrumental variable estimates of their impact. We find that, in a district where a dam is built, agricultural production does not increase but poverty does. In contrast, districts located downstream from the dam benefit from increased irrigation and see agricultural production increase and poverty fall. Overall, our estimates suggest that large dam construction in India is a marginally cost-effective investment with significant distributional implications, and has, in aggregate, increased poverty.
ER  -