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Can efficient transport moderate real sector productivity?

Can efficient transport moderate real sector productivity? This study aims to test the role of infrastructure for economic growth. For this purpose, panel data of the world is selected from 1998 to 2018 and the study has used slope moderator to test the productivity of real economic activity with economic growth.Design/methodology/approachIn this context, the feasible generalized least square method is adopted to estimate the results. Four types of infrastructure indicators i.e. quality of air, port, rail and road are used along with disaggregated GDP.FindingsAccording to the results of this study, the role of industrial and agricultural value addition without infrastructure is negative. For industrial value addition, the cross product with all infrastructure types positively impacts economic growth. All the infrastructures, along with services value addition, except seaport, are contributing to economic growth positively. Along with agriculture value addition, only road infrastructure is contributing to economic growth positively. This study has also used two control variables i.e. quality of education and institutions. These variables are also found to be positive and significant with economic growth.Originality/valueThis study explores the moderating role of quality of infrastructure sector on real sector productivity, which is leading to economic growth. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Competitiveness Review Emerald Publishing

Can efficient transport moderate real sector productivity?

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References (71)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1059-5422
eISSN
1059-5422
DOI
10.1108/cr-01-2021-0002
Publisher site
See Article on Publisher Site

Abstract

This study aims to test the role of infrastructure for economic growth. For this purpose, panel data of the world is selected from 1998 to 2018 and the study has used slope moderator to test the productivity of real economic activity with economic growth.Design/methodology/approachIn this context, the feasible generalized least square method is adopted to estimate the results. Four types of infrastructure indicators i.e. quality of air, port, rail and road are used along with disaggregated GDP.FindingsAccording to the results of this study, the role of industrial and agricultural value addition without infrastructure is negative. For industrial value addition, the cross product with all infrastructure types positively impacts economic growth. All the infrastructures, along with services value addition, except seaport, are contributing to economic growth positively. Along with agriculture value addition, only road infrastructure is contributing to economic growth positively. This study has also used two control variables i.e. quality of education and institutions. These variables are also found to be positive and significant with economic growth.Originality/valueThis study explores the moderating role of quality of infrastructure sector on real sector productivity, which is leading to economic growth.

Journal

Competitiveness ReviewEmerald Publishing

Published: Nov 16, 2022

Keywords: Access to markets; Cost of production; Real economic activity; Productivity

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