Quantifying the Relationship Between Transport Investment and Productivity in the Kingdom of Saudi Arabia

This paper examines the impact of large-scale transport investment and the resulted increased accessibility on the Gross Domestic Product (GDP) in the Kingdom of Saudi Arabia (KSA). Spatial and temporal economic data about the 13 regions of the country from 1999 to 2013 are employed and analysed using static and dynamic panel data models (the later were estimated using Generalised Method of Moments (GMM)). Both first-difference GMM model and system GMM model have satisfactory fit to the data however, system GMM models were the best among all. The results show that the elasticity of the one year lagged GDP variable is positive and statistically significant in all specifications considered, indicating the presence of a dynamic pattern towards economic growth. Generally, the value of transport investment for the two and three-years lag show positive and significant statistical relationships between transport investment and regional GDP among several specifications of the dynamic models. This means that, the monetary investment requires a period to deliver its benefits. On the other hand, railway accessibility value presents positive and immediate impact on GDP indicating that the KSA government needs to focus on future railway projects.

  • Supplemental Notes:
    • This paper was sponsored by TRB committee ABE90 Standing Committee on Transportation in the Developing Countries.
  • Corporate Authors:

    Transportation Research Board

  • Authors:
    • Alotaibi, Saleh
    • Quddus, Mohammed
    • Imprialou, Marianna
  • Conference:
  • Date: 2019


  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; Maps; References; Tables;
  • Pagination: 11p

Subject/Index Terms

Filing Info

  • Accession Number: 01697400
  • Record Type: Publication
  • Report/Paper Numbers: 19-03834
  • Files: TRIS, TRB, ATRI
  • Created Date: Dec 7 2018 9:26AM