Investment in transport infrastructure, transport induced-labor accessibility and industrial productivity in ECOWAS region

Abstract

The ECOWAS region faces significant challenges in achieving industrial sector productivity, largely due to inadequate investment in transport infrastructure. This lack of investment has led to poor transport-induced labour accessibility, limiting the mobility of the workforce and access to employment opportunities. Insufficient public transportation options contribute to high transportation costs, long travel times, and reduced connectivity between urban and rural areas. These issues not only hinder the efficient movement of goods and services but also restrict the ability of workers to reach job markets, thereby impacting overall productivity and economic integration within the region. Therefore, this study examined the effect of investment in transport infrastructure and transport-induced labour accessibility on industrial sector productivity in ECOWAS countries. The study adapted an endogenous growth model to analyse data sets for fifteen ECOWAS countries spanning the years 1975 to 2024. Data was retrieved from the World Development Indicator (WDI) to estimate panel causality and cross-sectional autoregressive distributed lag (CS-ARDL) models. Findings showed that total investment in transport infrastructure and transport-induced labour accessibility had positive and significant effects on industrial sector productivity in both the short run and long run. Also, bidirectional causality was recorded among investment in transport infrastructure, transport-induced labour accessibility, and industrial sector productivity. Consequently, the government should invest in transport infrastructure and provide subsidies for public transport to enhance affordability and accessibility for workers, enabling them to commute to job locations despite poor road conditions.