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Influence of transportation infrastructure on the relationship between institutions and economic performance

Influence of transportation infrastructure on the relationship between institutions and economic... This study aims to analyse the observation that the economics of many countries have boomed after the input of substantial investments into physical and social infrastructures.Design/methodology/approachA structural equation model is formulated to examine the effect of transportation infrastructure on the relationship between institutions and gross domestic product per capita (GDPPC). This study further differentiates between developed and developing economies.FindingsThe study identifies the different roles of transportation infrastructure in mediating the relationship between institutions and average income in these two types of economy. Institutions and transportation infrastructure positively influence GDPPC, whereas institutions positively influence transportation infrastructure. In addition, the results found indirect influence of institutions on GDPPC via transportation infrastructure.Originality/valueThis study provides new insights into international business studies based on institutional theory and factor-mobility theory. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Maritime Business Review Emerald Publishing

Influence of transportation infrastructure on the relationship between institutions and economic performance

Wong, Mei Chi; Yip, Tsz Leung
Maritime Business Review , Volume 4 (4): 18 – Nov 22, 2019
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18 pages

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Publisher
Emerald Publishing
Copyright
© Pacific Star Group Education Foundation.
ISSN
2397-3757
DOI
10.1108/mabr-09-2019-0038
Publisher site
See Article on Publisher Site

Abstract

This study aims to analyse the observation that the economics of many countries have boomed after the input of substantial investments into physical and social infrastructures.Design/methodology/approachA structural equation model is formulated to examine the effect of transportation infrastructure on the relationship between institutions and gross domestic product per capita (GDPPC). This study further differentiates between developed and developing economies.FindingsThe study identifies the different roles of transportation infrastructure in mediating the relationship between institutions and average income in these two types of economy. Institutions and transportation infrastructure positively influence GDPPC, whereas institutions positively influence transportation infrastructure. In addition, the results found indirect influence of institutions on GDPPC via transportation infrastructure.Originality/valueThis study provides new insights into international business studies based on institutional theory and factor-mobility theory.

Journal

Maritime Business Review – Emerald Publishing

Published: Nov 22, 2019

Keywords: Business location decisions; Institutional theory; Factor-mobility theory

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