Road infrastructure development and economic ...

Road infrastructure development and economic growth on national highway (Chilakaluripet to Nellore)

Author Name : Ms. Deepti Satranj, Mr. Piyush Das

ABSTRACT

Many countries want to stimulate economic growth and improve road networks in economically disadvantaged areas. This is because road infrastructure is essential for efficient people and goods movement, as well as access to a wide range of commercial and social activities. However, relying solely on road infrastructure construction would not be sufficient to achieve long-term economic growth. As a result, the contribution of road infrastructure creation and other socio-economic factors to economic growth is examined in this report. Fixed-effects panel linear regression analysis was performed using time series cross-sectional data for 60 countries over a three-decade period from 1980 to 2010 to shed light on this topic. The study's main finding was that increased road length per thousand people, per capita export, per capita education spending, and physical capital stock per worker all contributed to economic development. It was discovered that urbanisation and economic development had an inverted U-shaped dependence relationship. That is, economic growth rises at low levels of urbanisation but declines once urbanisation reaches a certain threshold. Furthermore, it was discovered that an increase in road length per thousand people would aid export development. In conclusion, this research suggests that policies aimed at improving road connectivity should be introduced in tandem with other socioeconomic and urban growth policies in order to achieve long-term economic growth.