On the Road to Economic Prosperity: The Role of Infrastructure in Ghana

The study investigates the impact of travel time reduction on the Ghanaian household wealth index from 2000 to 2016, using two datasets and two-stage least square estimation. It finds that a ten percent reduction in travel time would result in a 1.2 percent increase in the wealth index, supporting the Ghanaian government's economic and infrastructure development plans.

Format: Paperback / softback
Length: 75 pages
Publication date: 03 November 2022
Publisher: Cambridge University Press

This Element investigates the impact of travel time reduction, which is a direct effect of infrastructural investments from 2000 to 2016, on the Ghanaian household wealth index. The wealth index, constructed based on the possession of selected assets, reflects the well-being of residents in Ghana. The Element employs two datasets, the Demographic and Health Survey (DHS) and the DHS Covariates, to establish the causal relationship. The two-stage least square estimation is implemented to analyze the data.

The Element finds that a ten percent reduction in travel time from 2000 to 2015 would result in a 1.2 percent increase in the wealth index from 2003 to 2016. This finding is robust to various settings, including the addition of more control variables, the use of different instrumental variables, and the study of both short-term and long-term effects. The analysis lends support to the Ghanaian government's current economic and infrastructure development plans.

The reduction in travel time has significant implications for the economic development of Ghana. It can lead to increased productivity, improved access to markets, and enhanced business opportunities. By investing in infrastructure, the government can create a more conducive environment for economic growth and reduce poverty levels.

Furthermore, the impact of travel time reduction on the wealth index is not limited to the short term. It can have long-term benefits, such as improved health outcomes, higher education levels, and increased social mobility. By improving access to healthcare and education, individuals can increase their earning potential and improve their quality of life.

In conclusion, this Element provides valuable insights into the impact of travel time reduction on the Ghanaian household wealth index. It highlights the importance of infrastructural investments in promoting economic development and improving the well-being of residents. The analysis suggests that a ten percent reduction in travel time can lead to a significant increase in the wealth index, which can have long-term benefits for the country's economic and social development.

Weight: 138g
Dimension: 152 x 227 x 9 (mm)
ISBN-13: 9781009014397