Relative Impact of Transport Infrastructure Investment on Sectoral Growth in Nigeria

Abstract

Literature on the relationship between infrastructure investment and economic growth revealed
divergent of results especially across sample periods and sizes, and model specifications. This study examined
the relative impact of transport infrastructure investment on sectoral growth in Nigeria. Ex post facto research
design was employed using annual secondary data sourced from CBN, WDI (2016). The investigation of the
sectors of the Nigerian economy showed that road transport infrastructure was most significant (β= 29.65291,
t= 2.69504, p>0.05), with industrial sector productivity (β= -0.686874, t=-1.38578, p>0.05) and agricultural
sector productivity (β=-0.495217, t= -0.73817, p>0.05) not exerting a significant effect on economic growth in
Nigeria. It was also evident that health sector productivity (β= -144.6662, t= [-2.70142, p<0.05) and education
sector productivity (β= -18.36868, t= -2.74476, p<0.05) exert a significant negative effect on economic growth
in Nigeria at 5% level of significance. It was thus concluded that road transport infrastructure does not have a
significant effect on sectoral growth in Nigeria. Hence it was recommended that the government should embark
on development policies that will aim at strengthening the sub-sector of the economy so that it can operate in
its full capacity and improve its contribution to economic growth.