Road accessibility is an important development priority of the government of Bhutan.
Since, wealth is assumed to grow with road connectivity, using Bhutan Living Standard
Survey data of 2007 and 2012, a Difference in Difference regression based on different
wealth quantiles is performed. Wealth index in the study is generated using standard
Principal Component Analysis and Polychoric Principal Component Analysis. The findings
show that wealth has increased in the lower quantile, whereas road connectivity has no
impact on the middle quantiles and wealth decreased in upper quantile. This suggests that
the objective of the government is met in increasing wealth of the poor but government still
need to be thoughtful about the richer population.