Road Sector Development and Economic Growth in Ethiopia
The study attempts to see the trends, stock of achievements, and impact of road network on economic growth in Ethiopia. To do so, descriptive and econometric analyses are utilized. From the descriptive analysis, the findings indicate that the stock of road network is by now growing at an encouraging pace. The government?s spending has reached tenfold relative to what it was a decade ago. It also reveals that donors are not following the footsteps of the government in financing road projects. The issue of rural accessibility still remains far from the desired target level that the country needs to have. Regarding community roads, both the management and accountancy is weak, even to analyze its impact. Thus, the country needs to do a lot to graduate to middle income country status in terms of road network expansion, community road management and administration, and improved accessibility. The econometric analysis is based on time series data extending from 1971-2009. Augmented Cobb-Douglas production function is used to investigate the impact of roads on economic growth. The model is estimated using a two-step efficient GMM estimator. The findings reveal that the total road network has significant growthspurring impact. When the network is disaggregated, asphalt road also has a positive sectoral impact, but gravel roads fail to significantly affect both overall and sectoral GDP growth, including agricultural GDP. By way of recommendation, donors need to strengthen their support on road financing, the government needs to expand the road network with the aim of increasing the current rural accessibility, and more attention has to be given for community road management and accountancy. Lastly, gravel road expansion has to be made to meet the target level of the road network and simultaneously ascertain rural accessibility, thereby improving agricultural productivity and market access of the poor rural population.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fan, Shenggen & Chan-Kang, Connie, 2005.
"Road development, economic growth, and poverty reduction in China:,"
138, International Food Policy Research Institute (IFPRI).
- Fan, Shenggen & Chan-Kang, Connie, 2004. "Road development, economic growth, and poverty reduction in China," DSGD discussion papers 12, International Food Policy Research Institute (IFPRI).
- Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996.
"Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics,"
Journal of Economic Growth,
Springer, vol. 1(3), pages 363-89, September.
- Francesco Caselli & Gerardo Esquivel & Fernando Lefort, 1997. "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Working Papers Central Bank of Chile 03, Central Bank of Chile.
- Engle, Robert & Granger, Clive, 2015.
"Co-integration and error correction: Representation, estimation, and testing,"
Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
- Stephen Bond & Anke Hoeffler, 2001. "GMM Estimation of Empirical Growth Models," Economics Series Working Papers 2001-W21, University of Oxford, Department of Economics.
- Kleibergen, F.R. & Paap, R., 2003.
"Generalized Reduced Rank Tests using the Singular Value Decomposition,"
Econometric Institute Research Papers
EI 2003-01, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
- Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
- Frank Kleibergen & Richard Paap, 2003. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Tinbergen Institute Discussion Papers 03-003/4, Tinbergen Institute.
- Richard Paap & Frank Kleibergen, 2004. "Generalized Reduced Rank Tests using the Singular Value Decomposition," Econometric Society 2004 Australasian Meetings 195, Econometric Society.
- Fan, Shenggen & Rao, Neetha, 2003. "Public spending in developing countries: trends, determination, and impact," EPTD discussion papers 99, International Food Policy Research Institute (IFPRI).
- Bond, Stephen Roy & Hoeffler, Anke & Temple, Jonathan, 2001.
"GMM Estimation of Empirical Growth Models,"
CEPR Discussion Papers
3048, C.E.P.R. Discussion Papers.
- Graham Elliott & Thomas J. Rothenberg & James H. Stock, 1992.
"Efficient Tests for an Autoregressive Unit Root,"
NBER Technical Working Papers
0130, National Bureau of Economic Research, Inc.
- Peter Pedroni & David Canning, 2004. "The Effect of Infrastructure on Long Run Economic Growth," Department of Economics Working Papers 2004-04, Department of Economics, Williams College.
- Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:etd:wpaper:004. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dagmawi Atnafu)
If references are entirely missing, you can add them using this form.