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.
Highlights
Introduction & BackgroundTransportation expansion and improvement of the existing capacities are the key determinants for the performance of the infrastructure systems
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
Summary
Introduction & BackgroundTransportation expansion and improvement of the existing capacities are the key determinants for the performance of the infrastructure systems. Many of the previous studies have identified relationships between transportation investment and benefit or output. For this purpose, the benefits and costs of the projects or actions can be calculated using some approaches, such as life cycle cost analysis and decision-making processes (Gao et al, 2019; Kalan et al, 2019; Kalan, 2019). Some studies show an insignificant and even negative relationship between transportation investments and economic growth. Possible reasons for those results include the construction of an excess of roadways, underutilized capacities of existing networks, negative spillover effects, not to achieve corresponding cost utilizations or easiness in logistics, etc. The authors focus on the impact of highway capital stock increase on economic growth in local level
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