INVESTIGATING THE PATHS OF ROAD INFRASTRUCTURE: ANALYSIS OF THE EFFECTS OF ROADS ON ECONOMIC GROWTH IN PERU

Abstract

THE OBJECTIVE OF THE RESEARCH IS TO QUANTIFY THE IMPACT OF ROAD INFRASTRUCTURE ON ECONOMIC GROWTH AT THE DEPARTMENTAL LEVEL IN PERU. TO ACHIEVE THIS, A PANEL DATA SET WITH ANNUAL INFORMATION FROM 2010 TO 2022 FOR THE 24 DEPARTMENTS OF PERU IS UTILIZED. A PANEL DATA ERROR CORRECTION MODEL WAS EMPLOYED FOR THIS PURPOSE. THE LONG-TERM ESTIMATION RESULTS REVEAL THAT AN ADDITIONAL 1% INCREASE IN ROAD KILOMETERS LEADS TO A 0.295% INCREASE IN DEPARTMENTAL PER CAPITA GDP. FURTHERMORE, A 1% ADDITIONAL INCREASE IN THE PROPORTION OF PAVED ROAD INFRASTRUCTURE CORRESPONDS TO A 0.339% INCREASE IN DEPARTMENTAL PER CAPITA GDP. ADDITIONALLY, AN INCREASE OF ONE UNIT IN THE NUMBER OF ROAD CONCESSIONS WITHIN THE SAME DEPARTMENT RESULTS IN A 38.9% INCREASE IN DEPARTMENTAL PER CAPITA GDP. © 2024 BY THE AUTHORS.