On the Transportation Infrastructure Policy in the context of economic growth

Abstract

There exist a lot of studies illustrating an important role of infrastructure development in economic growth. In such studies, models in the Neo-Classical Economic had been in the main stream of growth theory. It is however a fact that the Neo-classical growth theory (Solow (1956)) had provided some narrow views, In a recent decade, a new trend of economic growth theory has been developed then a nexus of theories named “Endogenous Growth Theory” are just blooming up so that they get to be of great interest in economic science. The Endogenous Growth Theory focuses on human capital or knowledge capital accumulated by learning behavior or R&D activity which are now esteemed as a main power source for growth.
In this paper, proposes an economic growth model in which transportation infrastructure is explicitly incorporated. And we analyze financial resources (specific financial resources and general fund) of transportation social capital.