Honduras’ Transportation Project Evaluation
The Transportation Project is part of MCC’s five-year compact with Honduras that was signed in 2005. It is designed to reduce transportation costs between Honduran production centers and national, regional and global markets by upgrading and paving two major sections of Highway CA-5, paving and upgrading key secondary roads, and constructing a vehicle weight control system. For more information see the Honduras Country Page.
The impact evaluation for this project will examine whether the decreased transport costs resulting from the project leads to increased incomes. The evaluation will use propensity score matching and GIS analysis to measure the impact of the Transportation Project on variables such as household income and employment; business income and employment; total factor productivity; land value; prices of products; and accessibility to health facilities and schools.
The evaluation will rely upon a national household survey and a national survey of large businesses. The household survey, with a sample size of about 2,000 administered by the National Institute of Statistics (INE), includes both household information, employment, and consumption modules, as well as a transport module. In addition, a price and product survey will be conducted in about 100 communities. The business survey will include a sample of about 200 enterprises stratified by size, and will provide information about the effects of the Transportation project on firms, primarily their employment and earnings.