DOES TRANSPORT INFRASTRUCTURE SPUR ECONOMIC GROWTH IN SOUTH AFRICA? AN EMPIRICAL INVESTIGATION

This study examines the dynamic impact of transport infrastructure development on economic growth in South Africa using data from 1992 to 2021. The study was motivated by the potential of transport infrastructure as a driver of economic growth and the lack of conclusive results from the empirical studies undertaken on the subject to date. In addition, South Africa has a developed transport infrastructure; hence, it would be beneficial for policymakers to understand the exact nature of the impact that the transport infrastructure development has on the country's growth trajectory. Using the autoregressive distributed lag bounds approach, the results of the study revealed that in South Africa, transport infrastructure development has a positive impact on economic growth only in the long run, as no significant impact was established in the short run. Thus, in South Africa, investing in transport infrastructure leads to increased economic growth in the long term. It is, therefore, recommended that pro-transport infrastructure policies, as part of the country’s long-term economic planning strategy, be adopted to boost the country’s economic growth.