Dynamic Interactions among Road Transport Infrastructure Development, Economic Growth and Poverty Level in Nigeria

Abstract

This study examines the interactive effects among road transport infrastructure development, economic growth and poverty level in Nigeria. This was with the view to providing empirical evidence on the linkages among road transport infrastructure, economic growth and poverty level. The study used secondary data. Annual time series data from 1980 to 2013 on road network, Real Gross Domestic Product (RGDP) and Real Consumption Expenditure per Capita were collected from Central Bank of Nigeria (CBN) Statistical Bulletin (2013), National Bureau of Statistics (NBS) various publications and World Development Indicators (2013) published by the World Bank. The Structural Vector Autoregressive (SVAR) econometric technique was applied in the analysis of standard neoclassical macroeconomic framework. The result indicated that an unanticipated increase in road transport infrastructure development increased economic growth. Another indication is the positive response produced by real consumption expenditure per capita, as a proxy for poverty reduction due to an innovation in road transport infrastructure development. Furthermore, real consumption expenditure per capita increased immediately at the initial period following an innovation in economic growth but falls also thereafter. The study concluded that road transport infrastructure development had impacted positively on economic growth and poverty reduction in Nigeria.