Financial analysis on the influence of infrastructure construction on regional economic development

In recent years, it has been widely recognized that infrastructure construction is highly correlated with economic development, especially in developing countries. The quality and quantity of civil infrastructure systems have a direct bearing on economic growth. Lacks in the provision of infrastructure facilities such as transportation infrastructure systems can severely affect the growth in all economic sectors of a country or a region. Therefore, developing countries are facing the challenges of updating and expanding their infrastructure facilities so that economic growth will not be hampered by the lack of infrastructure construction. This research focuses on modeling the relationships between economic development in terms of the gross domestic product growth rate, and the transportation infrastructure construction growth rates using statistical data reported from government agencies. These relationships are crucial for making financial decisions on transportation infrastructure construction and investment policies both within the transportation modes at the regional level and among regions of a country for a specific transportation mode.