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Impact of Road Transport Infrastructure on Economic Growth: Evidence from Afghanistan

Mohibur-Rahman Mohib

Volume 4 Issue 3 | Sep 2021

DOI: ‎10.31841/KJEMS.2021.98‎

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Abstract

Infrastructure investment has long been held as an accelerator of the economy. ‎‎Internationally, ‎Afghanistan ranks poorly with infrastructure performance and ranks ‎in the lower ‎percentile for both ‎infrastructure investment and GDP growth rate. The ‎current study examines the ‎impact of road ‎transport infrastructure on economic ‎growth and sectoral bias in the public ‎expenditure in the ‎provision of social ‎services in Afghanistan. The ordinary least square regression ‎method is employed ‎‎by using time series data from 2005-2019. The results of the study are mixed. The ‎‎association between ‎road transport infrastructure and economic growth is robust, ‎except ‎for agriculture, energy, and ‎health, due to the government’s sectoral bias in ‎public expenditure and ‎allocation of the insufficient ‎budget. Thus, it is inferred that ‎road transport infrastructure investment ‎leads to economic growth ‎in Afghanistan. ‎The study recommends a balanced budget to sectors ‎related to economic growth ‎‎and policy for public-private partnerships.‎

Keywords: Afghanistan, Road Transport Infrastructure, Economic Growth, ‎Public Expenditure