IDEAS home Printed from https://ideas.repec.org/a/vrs/bjeust/v13y2023i1p150-176n1.html
   My bibliography  Save this article

Transport Infrastructure Investments as a Factor of Economic Growth of European Union Countries

Author

Listed:
  • Butkus Mindaugas

    (Institute of Regional Development, Vilnius University Šiauliai Academy, Vytauto 84, Šiauliai LT-76352, Lithuania)

  • Mačiulytė-Šniukienė Alma

    (Department of Business Technologies and Entrepreneurship, Faculty of Business Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, Vilnius LT-10223, Lithuania)

  • Matuzevičiūtė Kristina

    (Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, Vilnius LT-10223, Lithuania)

Abstract

Territorial cohesion and improved accessibility are among the main objectives of the European Union (EU) Cohesion policy. Although there is a wealth of literature on the impact of investment in transport infrastructure on overall accessibility levels, only a few studies have tried to evaluate the possible link between transport infrastructure investment (TII) and economic growth in the EU. Our research aims to evaluate the impact of TII on economic growth in the EU. The methodology is based on nonlinear neoclassical specification, which includes a multiplicative term to evaluate if the absence of corruption mediates the effect of TII on growth. Our unbalanced panel data covers 27 EU countries (Cyprus is excluded due to missing data and the United Kingdom is a part of the sample) from 2000 through 2019. Our research confirms a positive and statistically significant impact of TII on economic growth but with a diminishing return. Estimating the absence of corruption as a possible moderator of the effect that TII has on growth shows that control of corruption plays a significant role in the TII growth nexus. We find that in countries with a low level of control of corruption, TII has a statistically significant negative effect on growth.

Suggested Citation

  • Butkus Mindaugas & Mačiulytė-Šniukienė Alma & Matuzevičiūtė Kristina, 2023. "Transport Infrastructure Investments as a Factor of Economic Growth of European Union Countries," TalTech Journal of European Studies, Sciendo, vol. 13(1), pages 150-176, June.
    • Handle: RePEc:vrs:bjeust:v:13:y:2023:i:1:p:150-176:n:1
    DOI: 10.2478/bjes-2023-0008
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/bjes-2023-0008
    Download Restriction: no
    File URL: https://libkey.io/10.2478/bjes-2023-0008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Riccardo Crescenzi & Marco Di Cataldo & Andrés Rodríguez-Pose, 2016. "Government Quality And The Economic Returns Of Transport Infrastructure Investment In European Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 555-582, September.
    2. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "Infrastructure and regional growth in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 487-513, August.
    3. Muvawala, Joseph & Sebukeera, Hennery & Ssebulime, Kurayish, 2021. "Socio-economic impacts of transport infrastructure investment in Uganda: Insight from frontloading expenditure on Uganda's urban roads and highways," Research in Transportation Economics, Elsevier, vol. 88(C).
    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. Riccardo Crescenzi & Mara Giua, 2018. "One or Many Cohesion Policies of the European Union? On the Diverging Impacts of Cohesion Policy across Member States," SERC Discussion Papers 0230, Centre for Economic Performance, LSE.
    2. Di Cataldo, Marco & Rodríguez-Pose, Andrés, 2016. "What drives employment growth and social inclusion in EU regions," LSE Research Online Documents on Economics 68510, London School of Economics and Political Science, LSE Library.
    3. Wang, Chao & Lim, Ming K. & Zhang, Xinyi & Zhao, Longfeng & Lee, Paul Tae-Woo, 2020. "Railway and road infrastructure in the Belt and Road Initiative countries: Estimating the impact of transport infrastructure on economic growth," Transportation Research Part A: Policy and Practice, Elsevier, vol. 134(C), pages 288-307.
    4. Peiwen Guo & Jun Fang & Ke Zhu, 2023. "The Spatial Spillover Effect and Function Routes of Transport Infrastructure Investment on Economic Growth: Evidence from Panel Data of OECD Members and Partners," Mathematics, MDPI, vol. 11(5), pages 1-26, February.
    5. Andreas P. Kyriacou & Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2018. "The efficiency of transport infrastructure investment and the role of institutions: an empirical analysis," Working Papers. Collection B: Regional and sectoral economics 1802, Universidade de Vigo, GEN - Governance and Economics research Network.
    6. Goldmann, Kathrin & Wessel, Jan, 2020. "TEN-T corridors – Stairway to heaven or highway to hell?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 240-258.
    7. Kyriacou, Andreas P. & Muinelo-Gallo, Leonel & Roca-Sagalés, Oriol, 2019. "The efficiency of transport infrastructure investment and the role of government quality: An empirical analysis," Transport Policy, Elsevier, vol. 74(C), pages 93-102.
    8. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    9. Andrés Rodríguez-Pose & Tobias Ketterer, 2020. "Institutional change and the development of lagging regions in Europe," Regional Studies, Taylor & Francis Journals, vol. 54(7), pages 974-986, July.
    10. Boto-Garcia, David & Leoni, Veronica, 2022. "Estimating the dynamic effects of volcano eruptions on domestic tourism: Evidence based on mobile-phone geo-positioning records," Efficiency Series Papers 2022/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    11. Simona Iammarino & Andrés Rodriguez-Pose & Michael Storper, 2019. "Regional inequality in Europe: evidence, theory and policy implications," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 273-298.
    12. Tomasz Komornicki & Sławomir Goliszek, 2023. "New Transport Infrastructure and Regional Development of Central and Eastern Europe," Sustainability, MDPI, vol. 15(6), pages 1-24, March.
    13. Marco Di Cataldo & Andrés Rodríguez-Pose, 2017. "What drives employment growth and social inclusion in the regions of the European Union?," Regional Studies, Taylor & Francis Journals, vol. 51(12), pages 1840-1859, December.
    14. Congliang Wu & Ning Zhang & Liwen Xu, 2021. "Travelers on the Railway: An Economic Growth Model of the Effects of Railway Transportation Infrastructure on Consumption and Sustainable Economic Growth," Sustainability, MDPI, vol. 13(12), pages 1-18, June.
    15. Luis Orea & Inmaculada Álvarez-Ayuso & Luis Servén, 2024. "The Structural and Productivity Effects of Infrastructure Provision in Developed and Developing Countries," Advances in Econometrics, in: Essays in Honor of Subal Kumbhakar, volume 46, pages 265-308, Emerald Group Publishing Limited.
    16. Ciccarelli, Carlo & Magazzino, Cosimo & Marcucci, Edoardo, 2021. "Early development of Italian railways and industrial growth: A regional analysis," Research in Transportation Economics, Elsevier, vol. 88(C).
    17. Roberto Martino, 2021. "Public Investment, Convergence and Productivity Growth in European regions," Working Papers - Economics wp2021_19.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    18. Ignatov, Augustin, 2024. "European highway networks, transportation costs, and regional income," Regional Science and Urban Economics, Elsevier, vol. 104(C).
    19. Luigi Capoani & Gianluca Bortoletto & Samuele Fratini & Violetta Van Veen & Cristoforo Imbesi, 2022. "The Genesis and Evolution of the Blue Banana Region," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2022(2), pages 5-45.
    20. Giuseppe Francesco Gori & Patrizia Lattarulo & Marco Mariani, 2021. "The Expediting Effect of Monitoring on Infrastructural Works. A Regression-Discontinuity Approach with Multiple Assignment Variables," Papers 2102.09625, arXiv.org.

    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:vrs:bjeust:v:13:y:2023:i:1:p:150-176:n:1. 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    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.