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TRANSPORTATION INFRASTRUCTURE AND DIVERSIFICATION OF NIGERIA’S ECONOMY: Implications for the Developmental State

TRANSPORTATION INFRASTRUCTURE AND DIVERSIFICATION OF NIGERIA’S ECONOMY: Implications for the Developmental State

 

Abstract: Transportation infrastructure is indispensable for the diversification of an economy. This paper investigates the empirical link between transportation infrastructure and diversification of the Nigerian economy. Descriptive demonstrations are adopted to provide a situational focus to the study, while a generalized method of moment (GMM) model is specified and estimated. Findings reveal that economic diversification is a negative function of transportation concentration ratio. In the same vein, the result suggests that transportation infrastructure is a significant factor in diversifying the sectoral output share of the country and the export base of the economy from oil sector to non-oil sector. To address this, the study put forward policy suggestions to improve the effectiveness and efficiency of transportation infrastructure geared for rapid diversification of the economy.

JEL classification: L91; N7; R4

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