TITLE:
A Dynamic Panel Data Approach for the Analysis of the Growth Impact of Highway Infrastructures on Economic Development
AUTHORS:
Onur Kalan, Ilgin Gokasar
KEYWORDS:
Highway Investment, Highway Capital, Economic Growth, Panel Data, Dynamic Panel Data Model
JOURNAL NAME:
Modern Economy,
Vol.11 No.3,
March
26,
2020
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.