  This study examines the relationship between road infrastructure and crime
rate in rural India using a nationally representative survey. On the one hand,
building roads in villages may increase connectivity, boost employment, and
lead to better living standards, reducing criminal activities. On the other
hand, if the benefits of roads are non-uniformly distributed among villagers,
it may lead to higher inequality and possibly higher crime. We empirically test
the relationship using the two waves of the Indian Human Development Survey. We
use an instrumental variable estimation strategy and observe that building
roads in rural parts of India has reduced crime. The findings are robust to
relaxing the strict instrument exogeneity condition and using alternate
measures. On exploring the pathways, we find that improved street lighting,
better public bus services and higher employment are a few of the direct
potential channels through which road infrastructure impedes crime. We also
find a negative association between villages with roads and various types of
inequality measures confirming the broad economic benefits of roads. Our study
also highlights that the negative impact of roads on crime is more pronounced
in states with weaker institutions and higher income inequality.
