EuroEconomica, Vol 38, No 2 (2019)

Abstract

Literature on the relationship between infrastructure investment and economic growth revealed divergent of results especially across sample periods and sizes, and model specifications. This study examined the relative impact of transport infrastructure investment on sectoral growth in Nigeria. Ex post facto research design was employed using annual secondary data sourced from CBN, WDI (2016). The investigation of the sectors of the Nigerian economy showed that road transport infrastructure was most significant (= 29.65291, t= 2.69504, p>0.05), with industrial sector productivity (= -0.686874, t=-1.38578, p>0.05) and agricultural sector productivity (=-0.495217, t= -0.73817, p>0.05) not exerting a significant effect on economic growth in Nigeria. It was also evident that health sector productivity (= -144.6662, t= [-2.70142, p<0.05) and education sector productivity (= -18.36868, t= -2.74476, p<0.05) exert a significant negative effect on economic growth in Nigeria at 5% level of significance. It was thus concluded that road transport infrastructure does not have a significant effect on sectoral growth in Nigeria. Hence it was recommended that the government should embark on development policies that will aim at strengthening the sub-sector of theeconomy so that it can operate in its full capacity and improve its contribution to economic growth.

Literature on the relationship between infrastructure investment and economic growth revealed divergent of results especially across sample periods and sizes, and model specifications. This study examined the relative impact of transport infrastructure investment on sectoral growth in Nigeria. Ex post facto research design was employed using annual secondary data sourced from CBN, WDI (2016). The investigation of the sectors of the Nigerian economy showed that road transport infrastructure was most significant (= 29.65291, t= 2.69504, p>0.05), with industrial sector productivity (= -0.686874, t=-1.38578, p>0.05) and agricultural sector productivity (=-0.495217, t= -0.73817, p>0.05) not exerting a significant effect on economic growth in Nigeria. It was also evident that health sector productivity (= -144.6662, t= [-2.70142, p<0.05) and education sector productivity (= -18.36868, t= -2.74476, p<0.05) exert a significant negative effect on economic growth in Nigeria at 5% level of significance. It was thus concluded that road transport infrastructure does not have a significant effect on sectoral growth in Nigeria. Hence it was recommended that the government should embark on development policies that will aim at strengthening the sub-sector of theeconomy so that it can operate in its full capacity and improve its contribution to economic growth.

Key words: Road transport infrastructure, Investment, Sectoral growth and Nigeria