Income Inequality and Infrastructure: How does it work? (An examination using the case of the Roll-on/Roll-off network)

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Improving physical connectivity through transport infrastructure investment is a widely recognized strategy for fostering regional development. However, in an archipelagic country such as the Philippines, allocating scarce resources for infrastructure investments among its many island economies remains a challenge. A study (Manasan and Chatterjee 2003) notes that a well-distributed infrastructure investment will enable lagging regions to catch up with well-performing ones. A major step towards improving inter-island connectivity in the Philippines is the establishment of the Road Roll-on/Roll-off Terminal System (RRTS). This study will utilize the timing of the RRTS operation to assess how investments in transport infrastructure impact inequalities within and between local government units.