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The efficiency of transport infrastructure investment and the role of institutions: an empirical analysis

Author

Listed:
  • Andreas P. Kyriacou
  • Leonel Muinelo-Gallo
  • Oriol Roca-Sagalés

Abstract

In this article we analyze the efficiency of total transport investment in a sample of 34 countries over the period 1996 to 2010. We do so by way of Data Envelopment Analysis that evaluates countries according to their ability to achieve the maximum attainable infrastructure quantity and usage for a given investment volume. We find that the Central European countries, New Zealand and Japan are the most efficient when investing in transport infrastructure while the Eastern European countries, Russia, Turkey and Mexico are the least so. We moreover consider the role played by institutional or government quality when explaining cross-country differences in investment efficiency, based on truncated panel (and bootstrapped) regressions. We confirm the positive impact of institutional quality on efficiency even after controlling for a range of potentially confounding variables. Our analysis generates important policy implications for those concerned with the efficiency of transport infrastructure.

Suggested Citation

  • Andreas P. Kyriacou & Leonel Muinelo-Gallo & Oriol Roca-Sagalés, 2018. "The efficiency of transport infrastructure investment and the role of institutions: an empirical analysis," Working Papers. Collection B: Regional and sectoral economics 1802, Universidade de Vigo, GEN - Governance and Economics research Network.
    • Handle: RePEc:gov:wpregi:1802
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    More about this item

    Keywords

    transport infrastructures; efficiency; data envelopment analysis; panel data; government quality.;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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