Effects of Transportation on the Nigerian Economy

I. Njoku¹ , U. Onumajuru²

Section:Research Paper, Product Type: Journal-Paper
Vol.9 , Issue.4 , pp.1-6, Dec-2021

Online published on Dec 31, 2021

Copyright © I. Njoku, U. Onumajuru . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This study set out to assess the effect of transportation on economic growth in Nigeria. The essence of this study is to determine the nexus between transportation and the Nigerian economy. The research relied on secondary data sourced from the Central Bank of Nigeria statistical bulletin. The data were analyzed using descriptive and regression analytical tools. The result shows that the tabulated F-statistics=309.065 > calculated F-statistics= 8.94064512. Hence, the Hull hypothesis which states that transportation has no significant impact on Nigerian economy was rejected. The model developed for this study used the GDP as the dependent variable and transport modal output as independent variables. Generally, the study discovered that a unit change in the output of each of the transport mode causes a substantial corresponding increase in GDP. The paper suggests that government increases spending on transport infrastructure which will have a multiplier effect on transport sector output and in turn increase the GDP.

Key-Words / Index Term :
Transportation, economy, infrastructure, change, output

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