| Peer-Reviewed

How to Improve the Contribution of Roads to the Economic Growth in Countries Whose Development Is Lagging Behind: The Case of Côte d’Ivoire

Received: 11 December 2019    Accepted: 29 January 2020    Published: 13 April 2020
Views:       Downloads:
Abstract

Côte d'Ivoire has based its economic development on export-oriented agriculture of primary products (coffee, cocoa). The strong economic growth, called The «Ivorian Economic Miracle» of the years 1970 was supported by transport infrastructures and roads in particular. The extensive degradation of national roads has impacted negatively on the country's economic growth. This present study analyzes the contribution of roads to Ivorian national growth, mostly that of the sub-component: roads maintenance. The econometric study on time series is conducted using Eviews, and takes the actual maintenance budgets actually executed per capita as proxy for road investments. The results of short and long-term estimates show Ivorian private and public investments, exports and the labor force highly contribute to national growth, thus they are important channels of Ivorian growth. The negative impact of the budget really realized per capita on GDPR (-4.6%) thus demonstrates the effect of reducing roads to growth in Côte d'Ivoire. This confirms the hypothesis that the poor state of roads contributes to the country's declining growth. For Ivorian roads contribute positively to the national economy. We have determined thresholds for roads maintenance investments compared to national public and private investments, respectively 901.18% and 93.06%. These thresholds improve the contribution of roads maintenance at 79.65% and 64.62%proportionally to public and private investments. In order to enable roads to contribute positively to Côte d’Ivoire’s economic growth, the Ivorian state must index the executed budget to public or private investment in proportion to the thresholds set above.

Published in American Journal of Traffic and Transportation Engineering (Volume 5, Issue 1)
DOI 10.11648/j.ajtte.20200501.12
Page(s) 8-19
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Roads Maintenance, Economic Growth, Roads Infrastructures, Public and Private Investments

References
[1] Antonio E. (2007), «Infrastructures et développement: une revue des débats récents et à venir», Revue d’économie du développement, 4 (volume 21).
[2] Kouadio Y. (1993) “Rétrospective Economique de la Côte d’Ivoire”, Etude NationaleProspective scrétariat Technique Permanent, 8 Décembre.
[3] Meleu M. (1994), «Croissance Economique en Côte d’Ivoire: sources, contraintes etfluctuations», Miméo-Crémid.
[4] Pégatienan H. J. (1994), ‘‘Les sources de la croissance économique en Côte d’Ivoire’’, D. T. No 5, Décembre.
[5] Khanam R. B. (1999), Contributions of highway capital to output, cost, and productivity growth: evidence from (Tm) Canadian goods-producing sector, A thesis submitted to the Faculty of Graduate Studies in partial fulfillment of the requirements for the degree of Doctor of Philosophy; Graduate Program in Economics York University North York, Ontario, December.
[6] Fernald, J. G., (1999), "Roads to Prosperity? Assessing the Link Between Public Capital and Productivity", The American Economic Review, June, 619-638.
[7] Gillen, D. W., (1996), "Transportation Infrastructure and Economic Development, Logistics and Transportation Review, 32: 1, 39-69.
[8] Morrison C. et A. E. Schwartz (1996) «State infrastructure and productive performance», The American Economic review, dec.
[9] Aschauer D. A. (1989), «Public Investment and Productivity Growth in the Group of Seven», Economic Perspectives, 13 (5): 17-25.
[10] Aschauer, D. A. (1989), «Does Public Capital Crowd Out Private Capital?», Journal of Monetary Economics, 24 (2): 171-188.
[11] Munnell A. H. (1990) How does public infrastructure affect regional economic performance? New England Economic Review, Sept-Oct, 11-32.
[12] Easterly W., Rebelo S. (1993) «Fiscal Policy and Economic Growth: An Empirical Investigation», Journal of Monetary Economics, (32), Décembre, PP. 417-458.
[13] Collier P. and J. W. Gunning (1999) Explaining African Economic Performance, Journal of Economic Literature, vol 37, mars.
[14] Kalaitzidakis P. et S. Kalyvitis (2004) “On the macroeconomic implications of maintenance in public capital”, Journal of Public Economics, 88 (3/4): 695-712.
[15] Quinet E. (1998), «Principes d’Economies des Transports», Ed. Economica.
[16] Johansen, S. (1995). A statistical analysis of cointegration for I(2) variables. Econometric Theory, 11 (1), 25-59.
[17] Johansen, S. (1996). Likelihood-based Inference in Cointegrated Vector Autoregressive Models, (2nd ed.) Oxford University Press, Oxford.
[18] Granger, C. W. J. (1969). "Investigating Causal Relations by Econometric Modelsand Cross-spectral Methods". Econometrica. 37 (3): 424–438.
[19] Granger Clive W. J., 1980, "Testing for causality: A Personal Viewpoint", Journal of Economic Dynamics and Control, 2, 329-352.
[20] Engle R. F. et C. W. J. Granger (1987), Cointegretion and error correction: Representation, Estimation and Testing, Econometrica, 55, 251-276.
[21] Johansen, S. (1997). Likelihood inference in the I (2) model, Scandinavian Journal of Statistics, 24, 433-462 (1997).
[22] Goueu Zran Fulgence (2014) Interurban transport offer and economic growth: case of Côte d'Ivoire, PhD Es-Economics, FHB University of Cocody Abidjan, Thesis Unique, chapter 2.
[23] Fan, S., et C. Chang-Kang (2005) Road Development, Economic Growth, and Poverty Reduction in China. IFPRI Research Report 138, International Food Policy Research Institute Research, Washington DC.
[24] Fan, S., P. Hazell, et S. Thorat (2000) “Government Spending, Growth, and Poverty in Rural India.” American Journal of Agricultural Economics 82 (4): 1038-51.
[25] Hulten, C. R. and R. M. Schwab (1991), '1s There Too Little Public Capital?", Infrastructure and Economic Growth, Conference Paper, March.
[26] Tatom J. A. (1993) Is an infrastructure crisis lowering the nation’s productivity? Federal Reserve Bank of Saint-Louis Review, 75 (6), 3-21.
[27] Fan, S., D. Nyange, et N. Rao (2005) “Public Investment and Poverty Reduction in Tanzania: Evidence from Household Survey Data.” DSGD Discussion Paper 18, International Food Policy Research Institute, Washington, DC.
[28] Fan, S., S. Jitsuchon, et N. Methakunnavut (2004) “The Importance of Public Investment for Reducing Rural Poverty in Middle-Income Countries: The Case of Thailand.” DSGD Discussion Paper 7, International Food Policy Research Institute, Washington, DC.
[29] Fan S., X. Zhang, et N. Rao (2004) “Public expenditure, growth, and poverty reduction in rural Uganda.” IFPRI Discussion paper, International Food Policy Research Institute, Washington, DC.
[30] Serkan Arslanalp, Fabian Bornhorst, Sanjeev Gupta, and Elsa Sze (2010), Public Capital and Growth, International Monetary Fund WP/10/175, July.
[31] Pierre-Richard Agénor and Blanca Moreno-Dodson (2006), Public Infrastructure and Growth: New Channels and Policy Implications, World Bank Policy Research Working Paper 4064, November.
[32] Munnell Alicia H. (1992) « Infrastructure Investment and Economic Growth » Journal of Economic Perspectives, Policy Watch — Volume 6, Number 4 —— Pages 189–198.
[33] Prud’homme R. (1997), «Assessing the role of infrastructure in France by Means of Regionally Estimated Production Function», in Infrastructure and the Complexity of Economic Development, D. Batten and C. Karlsson editors, Springer.
[34] Fritsch B. et R. Prud’homme (1997), «Measuring the Countribution of Road Infrastructure to Economic Development in France», Macmillan.
[35] Craig, B. J., P. G. Pardey, et J. Roseboom (1997) “International Productivity Pattern: Accounting for Input Quality, Infrastructure, and Research.” American Journal of Agricultural Economics 79 (4): 1064-78.
[36] Fan, S., et N. Rao (2003) “Public Spending in Developing Countries: Trends, Determination, and Impact.” EPTD Discussion Paper 99, International Food policy Research Institute, Washington, DC.
[37] Fan, S., et X. Zhang (2004) “Infrastructure and Regional Economic Development in Rural China.” China Economic Review 15 (2): 203-14.
[38] Fan, S., L. Zhang, et X. Zhang (2002) Growth, Inequality, and Poverty in Rural China: The Role of Public Investments. IFPRI Research Report 125, International Food Policy Research Institute, Washington, DC.
Cite This Article
  • APA Style

    Fulgence Zran Goueu. (2020). How to Improve the Contribution of Roads to the Economic Growth in Countries Whose Development Is Lagging Behind: The Case of Côte d’Ivoire. American Journal of Traffic and Transportation Engineering, 5(1), 8-19. https://doi.org/10.11648/j.ajtte.20200501.12

    Copy | Download

    ACS Style

    Fulgence Zran Goueu. How to Improve the Contribution of Roads to the Economic Growth in Countries Whose Development Is Lagging Behind: The Case of Côte d’Ivoire. Am. J. Traffic Transp. Eng. 2020, 5(1), 8-19. doi: 10.11648/j.ajtte.20200501.12

    Copy | Download

    AMA Style

    Fulgence Zran Goueu. How to Improve the Contribution of Roads to the Economic Growth in Countries Whose Development Is Lagging Behind: The Case of Côte d’Ivoire. Am J Traffic Transp Eng. 2020;5(1):8-19. doi: 10.11648/j.ajtte.20200501.12

    Copy | Download

  • @article{10.11648/j.ajtte.20200501.12,
      author = {Fulgence Zran Goueu},
      title = {How to Improve the Contribution of Roads to the Economic Growth in Countries Whose Development Is Lagging Behind: The Case of Côte d’Ivoire},
      journal = {American Journal of Traffic and Transportation Engineering},
      volume = {5},
      number = {1},
      pages = {8-19},
      doi = {10.11648/j.ajtte.20200501.12},
      url = {https://doi.org/10.11648/j.ajtte.20200501.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtte.20200501.12},
      abstract = {Côte d'Ivoire has based its economic development on export-oriented agriculture of primary products (coffee, cocoa). The strong economic growth, called The «Ivorian Economic Miracle» of the years 1970 was supported by transport infrastructures and roads in particular. The extensive degradation of national roads has impacted negatively on the country's economic growth. This present study analyzes the contribution of roads to Ivorian national growth, mostly that of the sub-component: roads maintenance. The econometric study on time series is conducted using Eviews, and takes the actual maintenance budgets actually executed per capita as proxy for road investments. The results of short and long-term estimates show Ivorian private and public investments, exports and the labor force highly contribute to national growth, thus they are important channels of Ivorian growth. The negative impact of the budget really realized per capita on GDPR (-4.6%) thus demonstrates the effect of reducing roads to growth in Côte d'Ivoire. This confirms the hypothesis that the poor state of roads contributes to the country's declining growth. For Ivorian roads contribute positively to the national economy. We have determined thresholds for roads maintenance investments compared to national public and private investments, respectively 901.18% and 93.06%. These thresholds improve the contribution of roads maintenance at 79.65% and 64.62%proportionally to public and private investments. In order to enable roads to contribute positively to Côte d’Ivoire’s economic growth, the Ivorian state must index the executed budget to public or private investment in proportion to the thresholds set above.},
     year = {2020}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - How to Improve the Contribution of Roads to the Economic Growth in Countries Whose Development Is Lagging Behind: The Case of Côte d’Ivoire
    AU  - Fulgence Zran Goueu
    Y1  - 2020/04/13
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ajtte.20200501.12
    DO  - 10.11648/j.ajtte.20200501.12
    T2  - American Journal of Traffic and Transportation Engineering
    JF  - American Journal of Traffic and Transportation Engineering
    JO  - American Journal of Traffic and Transportation Engineering
    SP  - 8
    EP  - 19
    PB  - Science Publishing Group
    SN  - 2578-8604
    UR  - https://doi.org/10.11648/j.ajtte.20200501.12
    AB  - Côte d'Ivoire has based its economic development on export-oriented agriculture of primary products (coffee, cocoa). The strong economic growth, called The «Ivorian Economic Miracle» of the years 1970 was supported by transport infrastructures and roads in particular. The extensive degradation of national roads has impacted negatively on the country's economic growth. This present study analyzes the contribution of roads to Ivorian national growth, mostly that of the sub-component: roads maintenance. The econometric study on time series is conducted using Eviews, and takes the actual maintenance budgets actually executed per capita as proxy for road investments. The results of short and long-term estimates show Ivorian private and public investments, exports and the labor force highly contribute to national growth, thus they are important channels of Ivorian growth. The negative impact of the budget really realized per capita on GDPR (-4.6%) thus demonstrates the effect of reducing roads to growth in Côte d'Ivoire. This confirms the hypothesis that the poor state of roads contributes to the country's declining growth. For Ivorian roads contribute positively to the national economy. We have determined thresholds for roads maintenance investments compared to national public and private investments, respectively 901.18% and 93.06%. These thresholds improve the contribution of roads maintenance at 79.65% and 64.62%proportionally to public and private investments. In order to enable roads to contribute positively to Côte d’Ivoire’s economic growth, the Ivorian state must index the executed budget to public or private investment in proportion to the thresholds set above.
    VL  - 5
    IS  - 1
    ER  - 

    Copy | Download

Author Information
  • Department of Economics, Peleforo Gon Coulibaly University, Korhogo, Ivory Coast, Cote d'Ivoire

  • Sections