Impact of transportation infrastructure, with extension on quality of local government and EU integration, on economic growth, the case of Romania

Abstract

It is analysis of the impact of transportation infrastructure, which differs in terms of quality and administrative status in Romania on economic growth. The general model is built on the basis of Cobb-Douglass production function, adding extra infrastructure variables, after this the model was run on different samples, created in dependence of voting turnover in corresponding counties, which reflect the quality of local government. Moreover, the model was extended by a dummy variable, which distinguish between periods before and after EU integration. Stock of roads makes larger contribution to economic growth in counties with lower quality of government, while overall stock of capital has larger impact on growth in counties with better local government.