The Brasília experiment: The heterogeneous impact of road access on spatial development in Brazil

•Studies the impact of the expansion of the road network on municipal population and economic activity between 1970 and 2000.•Addresses endogeneity in road location using as natural experiment the creation of the capital city Brasilia in 1960.•Identification strategy combines inconsequential unit approach and use of planned routes as instruments.•Improvement in access to State capitals generated agglomeration effects in terms of population and GDP growth.•Effects were stronger up to 200 km around cities and for areas with good amenities and a high share of non-agricultural GDP.