Economic Spillover Effects of Highway Expansion: Evidence from Punjab Using District-Level Data

Nyrah Gupta

Abstract: This study investigates the economic spillover effects of highway expansion in Punjab, India, using district-level data from 2013 to 2024. Drawing on secondary sources such as the NHAI, PWD, Census of India, and Punjab Economic Survey, the paper analyzes the influence of improved road infrastructure on income and employment levels. Using both Difference-in-Differences and Panel Data Regression techniques, the results demonstrate that highway-connected districts experienced 10?12 percent higher income growth and 8?9 percent higher employment gains compared to non-linked districts. However, the benefits were uneven, favoring urban-industrial districts over rural ones. The findings underscore the role of highways as economic multipliers while calling for inclusive infrastructure strategies to mitigate regional disparities.

Keywords: Highway Expansion, Economic Spillovers, Regional Development, Punjab Economy, Infrastructure Growth

How to Cite?: Nyrah Gupta, "Economic Spillover Effects of Highway Expansion: Evidence from Punjab Using District-Level Data", Volume 14 Issue 9, September 2025, International Journal of Science and Research (IJSR), Pages: 212-216, https://www.ijsr.net/getabstract.php?paperid=SR25906111006, DOI: https://dx.doi.org/10.21275/SR25906111006