Impact of Age Population Structure on Transport Infrastructure Investments

Investment in transport infrastructure has been widely utilized as an instrument for inducing economic growth. Such investment usually leads to the creation of jobs and an increase in per capita income attracted by the population age structure. The transportation system plays a crucial function in linking the Ghanaian market to the world community and to trade. Moreover, as being one of the countries with a positive increase in the economy by 2030, the local economy is heavily reliant on the road network for efficient transportation of citizens, products, and services. Therefore necessary to assess the potential impact (age structure) on transport infrastructure investment. This study used data related to age population structure from 1990-2018 obtained from the World Data Bank. The study balanced the relation and long term of transport infrastructure investment, inflation, gross domestic product and age group 20-34, 35-59, and 60+ and also their influence on each other in Ghana For this purpose, the Auto regressive Distributive Lag method (ARDL) was used. The results of this research show that there exist significant causal effects of either single-direction or bidirectional. Starting with the single causality, transport granger causes the 20-34 and 60+, from 35-59, 60+, GDP, and inflation to the 20-34 age group and from 60+ to GDP. Bidirectional causality between GDP and transport infrastructure investment. The long-run causality demonstrated that the groups significantly caused transport. This ascribed that there exists significant causality among the transport and the respective age groups. The demographic structure could affect transport infrastructure investment through various channels. This study concluded with discussions on policy implications.