The impact of transport infrastructure investments on gross regional output

• Main Authors: Mendoza, Paula Reya D., Sy, Mark Jensen, Valerio, Ramon T., Jr.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Transportation engineering; Investments; Infrastructure (Economics)
• Online Access: https://animorepository.dlsu.edu.ph/etd_honors/354
• Institution: De La Salle University

Recent literature has emphasized on the effects of transport infrastructure investments in economic performance of developed countries. Using regional data of the Philippines from 1995 to 2005, we investigate the extent to which road transport infrastructure in the country affect gross regional output across time and space. Employing the basic Cobb-Douglas production function through OLS and Panel data regressions, we estimate the elasticity of gross regional output with respect to transport infrastructure investments and other inputs to production, specifically labor, physical capital and R&D investments. Moreover, we also estimate the same while accounting for the lag effect of variables, indicating whether investments are more useful in the current period or the next. The relevance of this study lies on the policy checks and awareness of the government as to whether adequate infrastructure has been provided to help boost economic production.