The ECOWAS Region's Road Network, Transport-Induced Labour Accessibility, and Industrial Productivity

Abstract

Poor road conditions and inadequate transport infrastructure increase transportation costs across economies, raising commuting expenses for workers and reducing their disposable income. These constraints limit labour mobility, restrict access to employment opportunities, and heighten the incidence of traffic accidents, thereby posing significant safety risks and further undermining workforce productivity. Against this backdrop, this study investigates the impact of road networks and transport-induced labour accessibility on industrial productivity in the Economic Community of West African States (ECOWAS). Drawing on an endogenous growth framework, the study employs a balanced panel data set covering 15 ECOWAS countries from 1975 to 2023. Data sourced from the World Development Indicators (WDI) were used to estimate Panel Granger causality and Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) models, enabling robust examination of both short-run and long-run dynamics. The empirical results reveal that road network expansion and improved transport-induced labour accessibility exert positive and statistically significant effects on industrial productivity across the region in both the short and long run. Furthermore, the causality analysis indicates a unidirectional causal flow from road network development to industrial productivity, suggesting that improvements in transport infrastructure directly stimulate industrial performance. Additionally, a bidirectional feedback relationship is observed between transport-induced labour accessibility and industrial productivity, highlighting the mutually reinforcing nature of labour mobility and industrial growth. The study concludes that enhancing road infrastructure and reducing transport burdens on workers are critical for boosting industrial efficiency and competitiveness in ECOWAS. It therefore recommends that policymakers and industry stakeholders prioritise sustained investment in road networks and implement supportive measures such as subsidised public transport to strengthen labour accessibility and advance industrial development