Research in Transportation Economics xxx (xxxx) xxx
Please cite this article as: Joseph Muvawala, Research in Transportation Economics, https://doi.org/10.1016/j.retrec.2020.100971
0739-8859/© 2020 Published by Elsevier Ltd.
Socio-economic impacts of transport infrastructure investment in Uganda:
Insight from frontloading expenditure on Uganda’s urban roads
and highways
Joseph Muvawala
*, 1
, Hennery Sebukeera
2
, Kurayish Ssebulime
3
National Planning Authority, P.O Box 21434, Kampala, Uganda
A R T I C L E INFO
Keywords:
Transport infrastructure
Economic growth
Uganda
ARDL and GKMA
ABSTRACT
Background: The relationship between transport infrastructure and economic growth has remained one of the
most striking expanses from the perspectives of economists, researchers as well as policy makers. This paper
therefore has examined the impact of road transport infrastructure investment on Uganda’s economic perfor-
mance and also quantifed the economic costs associated with ineffcient urban road transport infrastructure
network for the case of Uganda. The paper utilizes a rich econometric methodology involving the Auto
Regressive Distributed Lag (ARDL) to estimate the impact of road transport infrastructure and economic growth
as well as traffc counts of travel East bound (EB) and West Bound (WB) for the major roads leading to Kampala
Capital City to estimate the generalized cost of travel as the city represents more than 70% of the total national
vehicle traffc/population. The quantifcation of gains and costs provided a benchmark to inform further policy
processes, planning, and feasibility studies.
Results: The ARDL bound test results confrmed the existence cointegration of variables although the variables
were integrated of different orders. The results of empirical ARDL indicated that investment in road transport
infrastructure has both short and long run signifcant impact on economic growth of Uganda. In the long run, the
study fnds that investment in road transport infrastructure has a positive and signifcant impact on economic
growth. But in the short run, the impact is actually negative. The paper fnds that, a 1 percentage point increase
in investment in road transport infrastructure increases economic growth by 0.062 percentage points in the long
run. On the other hand, a 1 percentage point increase in investment in road transport infrastructure reduces
economic growth in the 1st year of the increase in the expenditure by 0.089 percentage points but (Gross Do-
mestic Product) GDP increases by 7.5 percentage points in the second year. This implies that, the impact of road
transport infrastructure investment on economic growth occurs with lags for the case of Uganda. Evidence also
justifes presence of signifcant economic benefts due to massive investments in the urban transport infra-
structure network through express highways and associated roads especially within the Greater Kampala
Metropolitan Area, municipal authorities and future transport planning for new cities.
Conclusion: The main conclusion of this paper is that, with the current state of traffc fow, the country loses about
6.7% of its GDP due to traffc congestion annually. Therefore, projects such as; Kampala fyover project, Entebbe
Express Highway, Southern Bypass, Northern Bypass, Kampala Bombo Express Highway, Kampala Jinja Express
Highway and Kibuye Mpigi Express highway together with associated urban roads improvements that are
planned for seamless fow of traffc within the Greater Kampala Metropolitan Area (GKMA) are highly justifed.
These projects should be prioritized, fast-tracked and developed in a concurrent manner to realize the intended
results. Further, the negative short run impact of infrastructure spending on growth implies the need to rebalance
public spending to also prioritize social sectors.
* Corresponding author. National Planning Authority, Kampala Uganda Clement Hill Road; Plot 17B, Uganda.
E-mail address: jmuvawala@gmail.com (J. Muvawala).
URL: http://www.npa.go.ug (J. Muvawala).
1
Executive Director, National Planning Authority; Kampala Uganda.
2
Senior Planner, in charge of project development and investment planning at the National Planning Authority.
3
Senior Labour Economist in charge of Manpower Planning at the National Planning Authority.
Contents lists available at ScienceDirect
Research in Transportation Economics
journal homepage: http://www.elsevier.com/locate/retrec
https://doi.org/10.1016/j.retrec.2020.100971
Received 29 October 2019; Received in revised form 25 August 2020; Accepted 16 September 2020