Assessing the impact of road transport infrastructure investment on economic development in South Africa
Background: There has been considerable decline in the investment on road transport infrastructure in recent times, as a result of the dwindling economic investment owing to lowering gross domestic product (GDP) since 2009. Objective: The objective of this study was to examine the relationship betw...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2017-09-01
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| Series: | Journal of Transport and Supply Chain Management |
| Subjects: | |
| Online Access: | https://jtscm.co.za/index.php/jtscm/article/view/324 |
| _version_ | 1811320072253210624 |
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| author | Anathi Hlotywa Emeka A. Ndaguba |
| author_facet | Anathi Hlotywa Emeka A. Ndaguba |
| author_sort | Anathi Hlotywa |
| collection | DOAJ |
| description | Background: There has been considerable decline in the investment on road transport infrastructure in recent times, as a result of the dwindling economic investment owing to lowering gross domestic product (GDP) since 2009.
Objective: The objective of this study was to examine the relationship between road transport investment (ROTI) and economic development (ED) in South Africa. This article adopts the Harrod–Domar (HD) model of economic growth and development theory, endogenous growth theory and Solow–Swan neoclassical growth model.
Method: Data were derived from the South African Reserve Bank, Quantec database and Statistics South Africa (StatsSA) between 1990 and 2014. It used time series, econometric models cointegration and vector error correction model (VECM) to analyse.
Result: The results of the estimation demonstrate that the explanatory variables account for approximately 86.7% variation in ED in South Africa. Therefore, there exists a positive relationship between ROTI and ED.
Conclusion: This study established a long-run relationship between phenomena and demonstrates the role of road transport investment on economic development in South Africa. |
| first_indexed | 2024-04-13T12:53:55Z |
| format | Article |
| id | doaj.art-78cbc50b0e1a480fb2dc0401d04f13e8 |
| institution | Directory Open Access Journal |
| issn | 2310-8789 1995-5235 |
| language | English |
| last_indexed | 2024-04-13T12:53:55Z |
| publishDate | 2017-09-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Transport and Supply Chain Management |
| spelling | doaj.art-78cbc50b0e1a480fb2dc0401d04f13e82022-12-22T02:46:07ZengAOSISJournal of Transport and Supply Chain Management2310-87891995-52352017-09-01110e1e1210.4102/jtscm.v11i0.324178Assessing the impact of road transport infrastructure investment on economic development in South AfricaAnathi Hlotywa0Emeka A. Ndaguba1Department of Economics, University of Fort HareInstitute of Development Assistant Management, University of Fort HareBackground: There has been considerable decline in the investment on road transport infrastructure in recent times, as a result of the dwindling economic investment owing to lowering gross domestic product (GDP) since 2009. Objective: The objective of this study was to examine the relationship between road transport investment (ROTI) and economic development (ED) in South Africa. This article adopts the Harrod–Domar (HD) model of economic growth and development theory, endogenous growth theory and Solow–Swan neoclassical growth model. Method: Data were derived from the South African Reserve Bank, Quantec database and Statistics South Africa (StatsSA) between 1990 and 2014. It used time series, econometric models cointegration and vector error correction model (VECM) to analyse. Result: The results of the estimation demonstrate that the explanatory variables account for approximately 86.7% variation in ED in South Africa. Therefore, there exists a positive relationship between ROTI and ED. Conclusion: This study established a long-run relationship between phenomena and demonstrates the role of road transport investment on economic development in South Africa.https://jtscm.co.za/index.php/jtscm/article/view/324road transport investmentcorruptioneconomic developmentHarrod-Domar model |
| spellingShingle | Anathi Hlotywa Emeka A. Ndaguba Assessing the impact of road transport infrastructure investment on economic development in South Africa Journal of Transport and Supply Chain Management road transport investment corruption economic development Harrod-Domar model |
| title | Assessing the impact of road transport infrastructure investment on economic development in South Africa |
| title_full | Assessing the impact of road transport infrastructure investment on economic development in South Africa |
| title_fullStr | Assessing the impact of road transport infrastructure investment on economic development in South Africa |
| title_full_unstemmed | Assessing the impact of road transport infrastructure investment on economic development in South Africa |
| title_short | Assessing the impact of road transport infrastructure investment on economic development in South Africa |
| title_sort | assessing the impact of road transport infrastructure investment on economic development in south africa |
| topic | road transport investment corruption economic development Harrod-Domar model |
| url | https://jtscm.co.za/index.php/jtscm/article/view/324 |
| work_keys_str_mv | AT anathihlotywa assessingtheimpactofroadtransportinfrastructureinvestmentoneconomicdevelopmentinsouthafrica AT emekaandaguba assessingtheimpactofroadtransportinfrastructureinvestmentoneconomicdevelopmentinsouthafrica |