The impact on transport infrastructure on economic growth in Nigeria

B.Sc. Olayemi Emmanuel Olasehinde

Master's thesis

Abstract:

Summary and Conclusion This dissertation provided a comprehensive evaluation of the relationship that exists between Nigerian economic growth and transport infrastructure, taking transport as a causal factor. The research is a combination of several chapters, from introducing the research topic to developing aims and objectives of the study, to exploring existing studies to find gaps in the literature, to developing a methodological framework on which the research is conducted. This study, thus, collected secondary data from relevant sources such as the World Development Indicator of the World Bank, National Bureau of Statistics, and various existing, relevant literature to understand the context of the study. Through trend analysis, descriptive statistics, correlation matrix, and regression analysis, this study evaluated the impact of transport infrastructure on economic growth in Nigeria, providing answers to the research questions and valuable implications for practice and policy. The study analyzed trends of critical variables relevant to the research to reveal patterns and fluctuations in the short- and long-term. Thus, a downward slope in the real GDP growth, significant fluctuations in private investment and transport services as a percentage of the GDP, and a fluctuating logistics performance index were all revealed in this study. These trends are a pointer to the historical overview of relevant transport and economic variables in Nigeria, underscoring how Nigeria has fared over time. Similarly, the study also included summary statistics to present useful information on the average values, distribution, and variability of key variables. The findings of this study, therefore, revealed significant variation in government spending on transport, economic growth, private investment, and other variables, underlining the complexity involved in measuring Nigerian transport infrastructure and system against her economic growth. While the correlation matrix examines the relationship between transport infrastructure and economic growth in Nigeria, underscoring the direction and magnitude of the connection, regression analysis offered more in-depth insights into the relationship, revealing the impact of transport infrastructure on economic growth for both short- and long-term. The findings, however, indicated that transport variables such as logistics performance index, private investment, and transport services do not significantly affect the growth of Nigerian economy. The findings, although counterintuitive, underscores the challenges facing the Nigerian transport system and business environment in stimulating economic growth. The research further conducted post estimation tests to confirm that validity and robustness of the research findings by confirming the absence of autocorrelation, multicollinearity, and heteroscedasticity. Meanwhile, the findings and conclusions of this study provides significant implications for transport experts, policymakers, and researchers alike. While the Nigerian case, according to the findings of this research, may differ from the expected results, the study underscored the importance of transport infrastructure in stimulating economic growth. Although there are peculiar challenges Nigeria faces, such as inadequacies, corruption, among others, that may impede the positive impact of transport infrastructure on economic growth. This study highlighted deliberate and targeted policy and infrastructural interventions to resolve issues of transport infrastructure, encourage private investments, and strengthen institutional capacity. By prioritising transport infrastructure and other relevant economic stimulants, as well as promoting public-private partnerships and investment in sustainable development in the transport sector, Nigeria can enhance its economy, promote access to trade and other economic opportunities, and enhance competitiveness on the broader global economy. Conclusively, the

Abstract:

study offers a significant contribution to the existing literature on the intricate connection between transport infrastructure and economic growth in Nigeria. While the findings of this research provide useful information and value-added insights, coupled with policy implications and actionable recommendations, there is, however, a need for future studies to address the gaps identified in this study. Hence, by leveraging the research results as basis to understand the Nigerian transport system in relation to the economy and consistent private and public investment in transport infrastructure, there are better possibilities that Nigeria can maintain a sustainable economic growth for years to come.

Keywords

Transport infrastructure, economic growth, infrastructure deficiencies, and air transport

Language used: English

Date on which the thesis was submitted / produced: 21. 3. 2024

Thesis defence

• Supervisor: doc. Ing. Irena Benešová, Ph.D.
• Reader: Hedvika Hánová, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management