Volume 5, Issue 1, January 2020, Page: 8-19
How to Improve the Contribution of Roads to the Economic Growth in Countries Whose Development Is Lagging Behind: The Case of Côte d’Ivoire
Fulgence Zran Goueu, Department of Economics, Peleforo Gon Coulibaly University, Korhogo, Ivory Coast, Cote d'Ivoire
Received: Dec. 11, 2019;       Accepted: Jan. 29, 2020;       Published: Apr. 13, 2020
DOI: 10.11648/j.ajtte.20200501.12      View  164      Downloads  68
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.
Keywords
Roads Maintenance, Economic Growth, Roads Infrastructures, Public and Private Investments
To cite this article
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, American Journal of Traffic and Transportation Engineering. Vol. 5, No. 1, 2020, pp. 8-19. doi: 10.11648/j.ajtte.20200501.12
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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