Economic Development and Road Safety: Evidence from India

Road traffic crash is a major public health problem in India. Economic development influence road safety but few studies have assessed both the short- and long-run relation between economic performance and road safety. This paper studied the linkage between economic development and road traffic accidents, fatalities and injuries in India. The annual data related to gross domestic product per capita (GDP) and unemployment rate – for the level of economic development, and number of road traffic accidents, fatalities, and injuries – indicators of road safety. was used for the span of 28 years (1995-2022). The ARDL approach to cointegration was applied to estimate the short- and long-run effects of economic development on road safety. Results of the study showed that in the long-run, both accidents and fatalities decrease while injuries increase with GDP. In the short-run, fatalities decrease with GDP but the negative impact of GDP on injuries. Government, policymakers, road safety agencies, motorists and motorcyclists should invest in road infrastructure, enforcement of traffic regulations and safety measures that will reduce injuries.