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Planning Ahead for Better Neighborhoods: Long Run Evidence from Tanzania

Author

Listed:
  • Michaels, Guy

    (London School of Economics)

  • Nigmatulina, Dzhamilya

    (London School of Economics)

  • Rauch, Ferdinand

    (University of Oxford)

  • Regan, Tanner

    (London School of Economics)

  • Baruah, Neeraj

    (London School of Economics)

  • Dahlstrand, Amanda

    (University of Zurich)

Abstract
What are the long run consequences of planning and providing basic infrastructure in neighborhoods, where people build their own homes? We study "Sites and Services" projects implemented in seven Tanzanian cities during the 1970s and 1980s, half of which provided infrastructure in previously unpopulated areas (de novo neighborhoods), while the other half upgraded squatter settlements. Using satellite images and surveys from the 2010s, we find that de novo neighborhoods developed better housing than adjacent residential areas (control areas) that were also initially unpopulated. Specifically, de novo neighborhood are more orderly and their buildings have larger footprint areas and are more likely to have multiple stories, as well as connections to electricity and water, basic sanitation and access to roads. And though de novo neighborhoods generally attracted better educated residents than control areas, the educational difference is too small to account for the large difference in residential quality that we find. While we have no natural counterfactual for the upgrading areas, descriptive evidence suggests that they are if anything worse than the control areas.

Suggested Citation

  • Michaels, Guy & Nigmatulina, Dzhamilya & Rauch, Ferdinand & Regan, Tanner & Baruah, Neeraj & Dahlstrand, Amanda, 2017. "Planning Ahead for Better Neighborhoods: Long Run Evidence from Tanzania," IZA Discussion Papers 11036, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp11036
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    Cited by:

    1. Franklin, Simon, 2020. "Enabled to work: The impact of government housing on slum dwellers in South Africa," Journal of Urban Economics, Elsevier, vol. 118(C).
    2. World Bank Group, 2018. "Sierra Leone Economic Update, June 2018," World Bank Publications - Reports 30032, The World Bank Group.
    3. Guy Michaels & Dzhamilya Nigmatulina & Ferdinand Rauch & Tanner Regan & Neeraj Baruah & Amanda Dahlstrand, 2021. "Planning Ahead for Better Neighborhoods: Long-Run Evidence from Tanzania," Journal of Political Economy, University of Chicago Press, vol. 129(7), pages 2112-2156.
    4. Gharad Bryan & Edward Glaeser & Nick Tsivanidis, 2019. "Cities in the Developing World," NBER Working Papers 26390, National Bureau of Economic Research, Inc.
    5. Brueckner, Jan K. & Rabe, Claus & Selod, Harris, 2019. "Backyarding: Theory and evidence for South Africa," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    6. Tilman Graff, 2019. "Spatial Inefficiencies in Africa's Trade Network," NBER Working Papers 25951, National Bureau of Economic Research, Inc.
    7. Manara, Martina & Regan, Tanner, 2020. "Eliciting demand for title deeds: lab-in-the-field evidence from urban Tanzania," LSE Research Online Documents on Economics 107538, London School of Economics and Political Science, LSE Library.
    8. Harari, Mariaflavia & Wong, Maisy, 2024. "Colonial Legacy and Land Market Formality," MPRA Paper 121334, University Library of Munich, Germany.
    9. Remi Jedwab & Mr. Prakash Loungani & Anthony Yezer, 2019. "How Should We Measure City Size? Theory and Evidence Within and Across Rich and Poor Countries," IMF Working Papers 2019/203, International Monetary Fund.
    10. Liu, Lu & Meng, Lina & Zhang, Ruige, 2024. "Does Easy Accessibility to Urban Parks Always Raise Home Values?," Journal of Housing Economics, Elsevier, vol. 63(C).
    11. Yamasaki, Junichi & Nakajima, Kentaro & Teshima, Kensuke, 2021. "From Samurai to Skyscrapers: How Historical Lot Fragmentation Shapes Tokyo," TDB-CAREE Discussion Paper Series E-2020-02, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    12. Brandily, P. & Rauch, F., 2024. "Within‐city roads and urban growth," LSE Research Online Documents on Economics 122580, London School of Economics and Political Science, LSE Library.
    13. Mariaflavia Harari & Maisy Wong, 2018. "Slum Upgrading and Long-run Urban Development: Evidence from Indonesia," 2018 Meeting Papers 367, Society for Economic Dynamics.
    14. Bradlow, Benjamin H. & Polloni, Stefano & Violette, William, 2023. "Public housing spillovers: Evidence from South Africa," Journal of Urban Economics, Elsevier, vol. 134(C).
    15. Ali, Daniel Ayalew & Deininger, Klaus, 2024. "Using registry data to assess gender-differentiated land and credit market effects of urban land policy reform: Evidence from Lesotho," World Development, Elsevier, vol. 175(C).

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    More about this item

    Keywords

    urban economics; economic development; slums; Africa;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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