Transportation infrastructure and economic growth: the case of Romania

Abstract

This article analyzes the impact of transportation infrastructure which differs in terms of quality and administrative status in Romania on economic growth, using panel data on the county level for the period from1995 to 2010. The model is built on the basis of Cobb-Douglass production function, adding infrastructure variables. The results obtained using models with different specifications show convincing evidence that Gross Regional Product is sensitive to the stock of roads available for transportation in Romania. Obtained results can serve as a proxy for policy makers in Republic of Moldova.