Infrastructure and Finance: Evidencefrom India's GQ Highway Network

June 11, 2019

We use the construction of Indiaís Golden Quadrangle (GQ) central highway network, together with comprehensive loan data drawn from the Reserve Bank of India, to investigate the interaction between infrastructure development and Önancial sector depth. We identify a disproportionate increase in loan count and average loan size in districts along the GQ highway network using stringent speciÖcations with industry and district Öxed e§ects. Our results hold in straight-line IV frameworks and are not present in ëplacebo testsíwith another highway that was planned to be upgraded at the same time as GQ but subsequently delayed.

Spotlight

UABdigital

The Union of Arab Banks (UAB) is an organization responsible for fostering cooperation between Arab banks, developing of Arab financial business, and enhancing the financing role of Arab banks in the Arab World. The Union of Arab Banks was formed on March 13, 1974 and comprises today of more than (300) Arab financial and banking institutions representing the major and biggest Arab banks, central banks, and local banking associations in the 20 Arab states. This makes the Union the largest banking and financial consortium in the region and an efficient representative of the Arab banking sector. UABdigital is the ecosystem digital transformation arm of the Union of Arab Banks established in April 2020 with a mandate to leave no financial institution behind as the sector transitions into the digital economy through elevating the state of digital transformation readiness and innovation across the UAB member-base.

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