This paper presents the results of the evaluation of the impacts of MCC’s US$ 200 million
improvement of 220 km of highway in the Republic of Georgia using a rigorous quasiexperimental
design. Three evaluation methods were implemented: a difference-in-difference
method, a dose-response continuous treatment approach that estimated project impacts across
geography, and a matched difference-in-difference using propensity scores. The study finds that
the road improvements led to a 27% increase in the number of industrial facilities in impacted
communities, a 4.2% increase in traffic volumes and a 24.4% increase in vehicle speeds, and that
food prices in local markets were also significantly impacted in a complex way. Notably, no
strong evidence is observed on income, consumption, asset ownership, employment, or
utilization of health and education services. Both the results and methodology contribute to the
growing literature on infrastructure impact evaluations with policy implications regarding both
the impact magnitudes and affected sectors from rural road improvements.