Abstract Since 2015, the United Kingdom (UK) has increased its investment in transportation infrastructure to compensate for years of underinvestment in comparison with peer countries. It is of critical importance to evaluate the effect of these recent investments, as well as historical ones, on economic development, both theoretically and empirically, to provide guidance on future infrastructure investment. However, few research looks into such policy adjustment on economic growth in the UK. To fill this gap, this paper investigates the relationship between transport infrastructure development and economic growth in the UK from different time spans. Principal component analysis (PCA) is used to construct a comprehensive measure of transport infrastructure development. This paper then applies Vector Error Correction Model (VECM) to investigate both long-run and short-run relationships between transport infrastructure development and economic growth from 1970 to 2017 in the UK. Empirical results suggest that transportation infrastructure has a long-run promotive effect on economic development. However, in the short run, this effect turns out to be significantly negative. The analysis of this paper indicates differentiated roles that the UK's transport infrastructure played in economic growth, which should be considered in future policy design of achieving economic sustainability in the UK.

    Highlights This paper investigates the relationship between transport infrastructure development and economic growth in the UK. Transportation infrastructure has a long-run promotive effect on economic development. In the short run, transportation infrastructure fails to promote economic development.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    The role of transport infrastructure in economic growth: Empirical evidence in the UK


    Contributors:
    Zhang, Yijia (author) / Cheng, Lu (author)

    Published in:

    Transport Policy ; 133 ; 223-233


    Publication date :

    2023-01-26


    Size :

    11 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




    Transport infrastructure and regional economic growth: evidence from China

    Hong, Junjie / Chu, Zhaofang / Wang, Qiang | Online Contents | 2011


    Transport infrastructure and regional economic growth: evidence from China

    Hong, Junjie / Chu, Zhaofang / Wang, Qiang | Online Contents | 2011


    The impact of transportation infrastructure on economic growth: empirical evidence from Pakistan

    Mohmand, Yasir Tariq / Wang, Aihu / Saeed, Abubakr | Taylor & Francis Verlag | 2017



    Transport Infrastructure, Trade and Economic Growth

    Demetriades, P. / European Conference of Ministers of Transport | British Library Conference Proceedings | 2007