Transportation and economic growth in Nigeria

Abstract

This paper attempts to provide empirical evidence on the contribution of transport investment, congestion and traffic related accidents to economic growth in Nigeria. In this paper, transport investment is proxied by physical stock of road infrastructure while congestion is proxied by automobile density. Using the extended Cobb Douglas Production function model and relying on cointegration/error correction technique, it is found that while transport investments positively contribute to economic growth, traffic accidents contribute negatively. Each impact is strong and statistically significant. An important implication of the results is that if Nigeria is to reverse the effect of economic meltdown and experience rapid economic growth by the year
2020, it is imperative that adequate steps should be taken to improve on the quantity and quality of road network. There is need to reduce pressure on existing road networks by opening up the waterways.