Transport Infrastructure and Poverty Reduction in Mauritius: Macroeconomic Evidences

By Boopen Seetanah and Ahmad Jameel Khadaroo.

Published by The Sustainability Collection

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Article: Print $US10.00
Article: Electronic $US5.00

This paper investigated transport infrastructure as an element in poverty reduction at the macro economic level for the case of Mauritius. An aggregate poverty function, extended for the sake of the study with transport capital of the country for the period 1960-2005 has been employed in a Vector Autoregressive framework to account for dynamism and endogeneity. Results from the analysis show that transport capital have been a sizeable element in reducing poverty in the country with a reported coefficient of -0.14. Such is also the case for non-transport capital, although to a lower extent. Poverty is also found to be essentially a dynamic phenomenon and constitutes a vicious cycle. Indirect effects of transport capital are also confirmed as such type of capital is observed to have positive effects on output, employment, human capital and negative effect on inequality, all of which in turn reduce poverty level.

Keywords: Transport, Poverty, Vector Autoregressive Models

The International Journal of Environmental, Cultural, Economic and Social Sustainability, Volume 5, Issue 1, pp.313-332. Article: Print (Spiral Bound). Article: Electronic (PDF File; 1.471MB).

Boopen Seetanah

Senior Lecturer, SOPSPAM, University of Technology, Port Louis, Mauritius

Msc, Mphil Selected Publications Journal Articles (in print or forthcoming) 1) ‘Assessing the contribution of land, sea and air transport capital to the economic performance of the small island state of Mauritius’ with A J Khadaroo, 2007, Applied Economics Letters, 14, 1151-1155; 2) ‘Human capital and Economic development: Allowing for causality and feedback effects in a VAR framework' 2007, Journal of Applied Economics, VI, 86-95; 3) ‘Financial development and economic growth: An ARDL approach for the case the small island state of Mauritius’, 2008, forthcoming in Applied Economics; 4) ‘Transport and Tourism Development’, 2007, with A J Khadaroo, in Annals of Tourism Research, 34 (4), 1021-1032; 5) ‘Transport infrastructure and tourism development: A dynamic Gravity model Approach’, 2008, with A J Khadaroo, forthcoming in Tourism Management; 6), ‘Transport and economic performance: The case of Mauritius’, 2008 with A J Khadaroo, forthcoming in Journal of Transport Economics and Policy; 7) ‘Determinants of Capital Structure: A case study from a small island developing economy’ 2007, with D Padachi and R K Ronoowah, Journal of Applied Finance, Vol 13(3), 5-28; and others.

Ahmad Jameel Khadaroo

-, Bank of Mauritius, Mauritius


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