A Dynamic Panel Data Approach for the Analysis of the Growth Impact of Highway Infrastructures on Economic Development

Abstract

Turkey is a developing country where the transportation sector receives a considerable economic share. Roads are the pioneer mode of transportation in Turkey and the common opinion is that increasing highway networks lead to major changes in economic development. This paper focuses on the growth impact of highway infrastructure on economic development and recommends a dynamic panel data approach which is not common in the transportation economics literature. This model is applied to local regions that are located in the eastern and northern parts of Turkey to measure the effects of highway capital stocks on Gross Domestic Product (GDP) change between 2004 and 2016. The analysis reveals that the relationship between GDP and highway capital stock is positive, and statistically significant for local regions in Turkey. It is indicated that the findings of this paper can be a guide for policy and decision-makers and implemented into different regions and locations.

Public infrastructural development and economic performance in Africa: a new evidence from panel data analysis

“…Overall, we find overwhelming evidence that infrastructural development impacts positively and significantly on GDP per capita growth in Africa. This is also consistent with the bulk of recent studies in the extant literature, such as Kalan and Gokasar ( 2020 ), Popov ( 2020 ), Hanedar and Uysal ( 2020 ), Wang et al ( 2020a , b ), Cheng et al ( 2020 ), Nugraha et al ( 2020 ), Stawiarska ( 2018 ), Cigu et al ( 2019 ), Rice and Martin ( 2018 ) and Toader et al ( 2018 ). These studies have investigated the infrastructure–growth relationship in countries and regions outside Africa and found evidence in support of the important role that infrastructure plays as a driver of growth.…”

“…Investment in transportation infrastructure has been recognized as a crucial growth-promoting strategy (Crescenzi et al 2016 ). Some recent studies have validated this conclusion on the symmetric impacts of transport infrastructures on economic growth, and these include Kauzen et al ( 2020 ) for Tanzania, Kalan and Gokasar ( 2020 ) for Turkey, Popov ( 2020 ) for Russia, Hanedar and Uysal ( 2020 ) for the Ottman Empire, Babatunde ( 2018 ) for Nigeria, Stawiarska ( 2018 ) for Poland, Cigu et al ( 2019 ) and Vlahinić Lenz, et al ( 2018 ) for European Union (EU) economies and Xueliang ( 2013 ) for China. In India, studies that have found either mutual feedbacks between road infrastructure and economic growth or a unidirectional causality from rail infrastructure to economic growth include Pradhan and Bagchi ( 2013 ) and Vidyarthi and Mishra ( 2020 ).…”

A Three-Dimensional Evaluation Model of the Externalities of Highway Infrastructures to Capture the Temporal and Spatial Distance to Optimal—A Case Study of China

“…From the perspective of positive externalities, great changes have taken place in the employment improvement (PS4), afforestation coverage rate of built-up area (PEO1), medical care improvement (PS3), and external economic relations (PE1). The significant positive effect of highway infrastructures on the economy has always been recognized [14,78]. In addition, the relevant literature on the development of Jiangsu province shows that there was an increasing demand for medical care and ecological environment protection.…”

A Time-Varying Coupling Analysis of Expressway Traffic Volume and Manufacturing PMI

“…In recent years, many researchers have analyzed the impact of expressway on economic development of manufacturing industries. eir results showed a positive impact of expressway capital stock on gross domestic product (GDP) [5]. For example, areas with high traffic mileage have higher manufacturing and employment levels, and there is a positive lagging correlation between road attributes and manufacturing [6].…”