Effect of Road Infrastructure on Selected Economic Development Indicators in Kenya
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Date
2025-05
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East African Journal of Interdisciplinary Studies
Abstract
Kenya, as a developing nation, has been making significant investments in
infrastructure projects, including roads, railways, ports, and energy, in recent
years. Such infrastructure development is expected to have far
-
reaching
implications for various sect
ors of the economy. Efficient and reliable
infrastructure networks are crucial for facilitating trade, attracting investments,
improving connectivity, reducing transaction costs, and promoting economic
activities. However, while there is a general understa
nding of the importance of
infrastructure, it is essential to conduct a focused study to examine the specific
effects and outcomes of infrastructure development in Kenya. The study was
anchored by Solow neoclassical growth theory. A longitudinal research d
esign
was adopted. The study utilized time series secondary data from 1991 to 2021 on
an annual basis. The data was obtained from the World Bank and the Kenya
National Bureau of Statistics. Empirically, the study developed a transport
-
growth
model that is
an extension of Solow (1956) neoclassical growth function and
estimate the model with time series data of Kenya. The study adopted
Autoregressive Distributed Lag (ARDL) model and Granger causality approach
as the technique for testing the study relationshi
ps. Diagnostic tests such as
normality, Multicollinearity, heteroskedasticity and autocorrelation was
conducted to ensure that the assumptions of regression analysis are not violated.
Ethical considerations was adhered to by obtaining permit from NACOSTI,
Kenyatta university graduate school and the permission from the ethical
committee. The short run effect were analysed using ECM informed by the
positive cointegration status of the variables all the models. Road infrastructure,
labour participation and ins
titution quality index significantly affected economic
growth. However, technological growth has insignificant effect on economic
growth. It can be concluded that, based on empirical results technological progress
has not been fully utilised to generate ec
onomic growth. It is also important to
point out that the creation of a conducive environment, particularly innovation and
technological space enhances economic growth. This can be attained by having a
tax haven for the inaugural innovators to sustain their
motivation. Strong
institutions are defined by adherence to the rule of law and conformity to
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Citation
Njihia, D. K. & Nzai, C.(2025). Effect of Road Infrastructure on Selected Economic Development Indicators in Kenya. East African Journal of Interdisciplinary Studies, 8(1), 251-268. https://doi.org/10.37284/eajis.8.1.2949.