Effects of Transport Infrastructure Development on Regional Economic Growth in Romania

Transport infrastructure is commonly viewed as a key driver of development, although its actual contribution remains debated and appears to be dependent on geographical and economic context. This study investigates the impact of transport infrastructure on regional economic growth in Romania, with a particular focus on spatial spillover effects. Using panel data for Romanian regions over the period 2000–2024, the analysis applies spatial econometric techniques to capture both direct and indirect effects of transport infrastructure and economic factors. A structured model selection procedure, based on Lagrange Multiplier tests and robust diagnostics, supports the use of the Spatial Autoregressive Model (SAR) as the preferred specification. The results reveal significant spatial dependence in regional economic performance, indicating that growth processes extend across regional boundaries. Nonetheless, the findings show that transport infrastructure does not exert a statistically significant direct effect on economic growth once spatial and structural factors are controlled. Instead, labor and private gross capital formation emerge as the primary drivers, generating both strong local impacts and substantial spillover effects. These results suggest that transport infrastructure acts mainly as an enabling factor rather than a standalone driver of growth, making the concept of “political mythification” of transport infrastructure effectiveness relevant in the Romanian context.