IDEAS home Printed from https://ideas.repec.org/a/ris/ilojep/0077.html
   My bibliography  Save this article

Determinants Of Quality Of Land Transport Infrastructure In Developing Countries

Author

Listed:

Abstract

Land transport carries 90 per cent and 80 per cent of passengers and freight, respectively, in developing countries. However, the quality of road (3.3) and rail (2.6) infrastructure in these countries is below the world average (4.07 and 3.61), despite enormous investments, policies, and schemes geared towards the sector. Previous studies focused on determinants of stock and investment in road and rail infrastructure, which may not reflect the quality of road and rail infrastructure on the ground. Therefore, this study investigated the factors that determine the quality of land transport infrastructure in developing countries. The study was rooted in an extended endogenous growth model. Panel data from 106 developing countries spanning the period of 2007–2022 were sourced. The study used Driscoll-Kraaypanel estimation techniques. The results show that gross domestic product per capita, credit to the private sector, debt-toGDP, urban growth, natural resources, and institutions have a significant impact on the quality of road and rail transport infrastructure. There is evidence that institutions in developing countries are too weak to create an investment climate for quality road and rail to improve. The overall findings show that developing countries need to strengthen their institutions.

Suggested Citation

  • Idowu Obakemi, Funsho & Tunde Arosanyin, Godwin, 2024. "Determinants Of Quality Of Land Transport Infrastructure In Developing Countries," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 11(2), pages 19-39, June.
    • Handle: RePEc:ris:ilojep:0077
    as

    Download full text from publisher

    File URL: https://www.ijep.org/issues/volume11issue112024/v2/Obakemi2024.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cervero, Robert & Day, Jennifer, 2008. "Suburbanization and transit-oriented development in China," Transport Policy, Elsevier, vol. 15(5), pages 315-323, September.
    2. Toshiro Nishizawa, 2018. "Infrastructure Investment and Finance in Asia," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 14(5), pages 925-954, September.
    3. Michael Trebilcock & Michael Rosenstock, 2015. "Infrastructure Public-Private Partnerships in the Developing World: Lessons from Recent Experience," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 335-354, April.
    4. Bom, Pedro R.D. & Ligthart, Jenny E., 2014. "Public infrastructure investment, output dynamics, and balanced budget fiscal rules," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 334-354.
    5. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LP, vol. 7(3), pages 281-312, September.
    6. Daron Acemoglu & Melissa Dell, 2010. "Productivity Differences between and within Countries," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 169-188, January.
    7. Rokicki, Bartlomiej & Stępniak, Marcin, 2018. "Major transport infrastructure investment and regional economic development – An accessibility-based approach," Journal of Transport Geography, Elsevier, vol. 72(C), pages 36-49.
    8. Zheng, Qing Yuan & Law, Teik Hua & Wong, Shaw Voon & Ng, Choy Peng, 2024. "Relative improvements between roads and railways and economic performance: A panel data analysis," Transport Policy, Elsevier, vol. 153(C), pages 87-96.
    9. Agénor, Pierre-Richard, 2010. "A theory of infrastructure-led development," Journal of Economic Dynamics and Control, Elsevier, vol. 34(5), pages 932-950, May.
    10. Galilea, Patricia & Medda, Francesca, 2010. "Does the political and economic context influence the success of a transport project? An analysis of transport public-private partnerships," Research in Transportation Economics, Elsevier, vol. 30(1), pages 102-109.
    11. Chengete Chakamera & Paul Alagidede, 2018. "The nexus between infrastructure (quantity and quality) and economic growth in Sub Saharan Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 641-672, September.
    12. Calderon, Cesar & Serven, Luis, 2014. "Infrastructure, growth, and inequality : an overview," Policy Research Working Paper Series 7034, The World Bank.
    13. Li, Zhigang, 2017. "Infrastructure and Urbanization in the People’s Republic of China," ADBI Working Papers 632, Asian Development Bank Institute.
    14. Holtz-Eakin, Douglas & Schwartz, Amy Ellen, 1995. "Infrastructure in a structural model of economic growth," Regional Science and Urban Economics, Elsevier, vol. 25(2), pages 131-151, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tovar Jalles, João & Park, Donghyun & Qureshi, Irfan, 2024. "Public and Private Investment as Catalysts for Growth: An analysis of emerging markets and developing economies with a focus on Asia," Journal of International Money and Finance, Elsevier, vol. 148(C).
    2. Giovanni Ganelli & Juha Tervala, 2020. "Welfare Multiplier of Public Investment," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(2), pages 390-420, June.
    3. Pedro R. D. Bom & Aitor Goti, 2018. "Public Capital and the Labor Income Share," Sustainability, MDPI, vol. 10(11), pages 1-17, October.
    4. Júlio Vicente Cateia & Maurício Vaz Lobo Bittencourt & Terciane Sabadini Carvalho & Luc Savard, 2023. "Funding schemes for infrastructure investment and poverty alleviation in Africa: Evidence from Guinea‐Bissau," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1505-1529, August.
    5. Andreea Ocolișanu & Gabriela Dobrotă & Dan Dobrotă, 2022. "The Effects of Public Investment on Sustainable Economic Growth: Empirical Evidence from Emerging Countries in Central and Eastern Europe," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    6. Chatterjee, Santanu & Gibson, John & Rioja, Felix, 2018. "Public investment, debt, and welfare: A quantitative analysis," Journal of Macroeconomics, Elsevier, vol. 56(C), pages 204-217.
    7. Timilsina,Govinda R. & Hochman,Gal & Song,Ze, 2020. "Infrastructure, Economic Growth, and Poverty : A Review," Policy Research Working Paper Series 9258, The World Bank.
    8. Sedef Sen & Tugba Yilmaz, 2023. "An Econometric Analysis on the Relationship between Infrastructure and Economic Growth," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(2), pages 361-393, July.
    9. Víctor Adame & Javier Alonso & Luisa Pérez & David Tuesta, 2017. "Infrastructure & economic growth from a meta-analysis approach: do all roads lead to Rome?," Working Papers 17/07, BBVA Bank, Economic Research Department.
    10. Florian Morvillier, 2020. "Infrastructures and the real exchange rate," EconomiX Working Papers 2020-26, University of Paris Nanterre, EconomiX.
    11. Kamruzzaman, Md. & Baker, Douglas & Washington, Simon & Turrell, Gavin, 2013. "Residential dissonance and mode choice," Journal of Transport Geography, Elsevier, vol. 33(C), pages 12-28.
    12. Alfred Garloff & Carsten Pohl & Norbert Schanne, 2013. "Do small labor market entry cohorts reduce unemployment?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(15), pages 379-406.
    13. Meng, Chang & Ghafoori, Noorulhaq, 2024. "The economic impact of terrorism in South Asia," Socio-Economic Planning Sciences, Elsevier, vol. 96(C).
    14. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    15. Martina Vukašina & Ines Kersan-Škabiæ & Edvard Orliæ, 2022. "Impact of European structural and investment funds absorption on the regional development in the EU–12 (new member states)," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(4), pages 857-880, December.
    16. Ding, Mingfa, 2014. "Political Connections and Stock Liquidity: Political Network, Hierarchy and Intervention," Knut Wicksell Working Paper Series 2014/7, Lund University, Knut Wicksell Centre for Financial Studies.
    17. Younes Gholizadeh, 2020. "Causality Relationship between Energy Consumption and Economic Growth in the European Union Countries," EERI Research Paper Series EERI RP 2020/12, Economics and Econometrics Research Institute (EERI), Brussels.
    18. Skare, Marinko & Gavurova, Beata & Sinkovic, Dean, 2023. "Regional aspects of financial development and renewable energy: A cross-sectional study in 214 countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1142-1157.
    19. Alessandro Federici & Pierluigi Montalbano, 2012. "Macroeconomic volatility, consumption behaviour and welfare: A cross-country analysis," Working Paper Series 3612, Department of Economics, University of Sussex Business School.
    20. Aynur Pala, 2014. "The Effect of Valuation Ratios, Gold Price, and Petroleum Price on Equity Returns: A Comparison of Static Panel and Quantile Regressions," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 80-89, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:ilojep:0077. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniel Akanbi (email available below). General contact details of provider: https://edirc.repec.org/data/deilong.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.