Cost of road infrastructure development, macroeconomic conditions and Nigeria’s economic growth
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Date
2021-03
Authors
Babalola, A.J.
Iwegbu, O.
Journal Title
Journal ISSN
Volume Title
Publisher
Lagos Journal of Architecture
Abstract
The fluctuations of the macroeconomic environment in Nigeria are causing high cost of road infrastructure development thereby affecting the economic growth of the country negatively. The aim of this study is to investigate the influence of cost of road infrastructure development and some selected macroeconomic variables such as inflation rate, interest rate, exchange rate on the economic growth in Nigeria. The research design adopted in this study was an “ex-post facto” type, otherwise known as a causal comparative design. Autoregressive Distributed Lag Model (ARDL) estimation technique was employed to estimate the regression. The result from the study shows that sustained increase in the cost of road infrastructure dampens the nation’s economic performance as the sustained increases impact heavily on the fiscal component of government resources thereby gulping much of it that would have been channeled to other sources of the economy. Also, depreciation of the currency does not improve economic performance. Further result suggests that there is thus a lag between the period foreign direct investment inflows impacts on the economy while inflation rate significantly enhances the economic performance and lagged interest rate has negative impact. The recommendation from this study is that government must come up with policies that will stabilize the macroeconomic environment in the country so that the cost of development of projects with respect to road construction can decline, this ensures sustainable growth.
Description
Scholarly articles
Keywords
Cost of Road Construction , Macroeconomic Factors , Road infrastructure , Economic Growth , Nigeria , Research Subject Categories::SOCIAL SCIENCES::Business and economics::Economics
Citation
Babalola, A.J., & Iwegbu, O. (2021). Cost of road infrastructure development, macroeconomic conditions and Nigeria’s economic growth. Lagos Journal of Architecture, 5, 21 – 44