GLOBAL TRANSPORTATION EXPENDITURE AND ECONOMIC PERFORMANCE: A COMPREHENSIVE ANALYSIS OF TRANSPORTATION EXPENDITURE'S IMPACT ON ECONOMIC DEVELOPMENT IN KEY GLOBAL ECONOMIES (1990-2023)

Authors

  • Diana Al-Nabulsi Department of Civil and Construction Engineering, WESTERN MICHIGAN UNIVERSITY, KALAMAZOO, MI 49008, USA
  • Ali Alhawiti Civil Engineering Department, Faculty of Engineering, UNIVERSITY OF TABUK, TABUK 71491, SAUDI ARABIA
  • Valerian Kwigizile Department of Civil and Construction Engineering, WESTERN MICHIGAN UNIVERSITY, KALAMAZOO, MI 49008, USA
  • Jun- Seok Oh Department of Civil and Construction Engineering, WESTERN MICHIGAN UNIVERSITY, KALAMAZOO, MI 49008, USA
  • Ahnaf Shahin Chowdhury Department of Civil and Construction Engineering, WESTERN MICHIGAN UNIVERSITY, KALAMAZOO, MI 49008, USA

DOI:

https://doi.org/10.21837/pm.v24i41.2019

Keywords:

Transportation Economics, GDP, transportation expenditure, econometric model, Hierarchical Linear Regression (HLR)

Abstract

This study examines the relationship between transportation expenditure and economic performance across 41 countries over the period 1990–2023, highlighting the global role of transportation investment in economic development. Using descriptive statistics, correlation analysis, and hierarchical linear regression, the research investigates the association between gross domestic product (GDP) and multiple dimensions of transportation expenditure. The results indicate a strong positive relationship between GDP and total transportation expenditure, as well as passenger transportation expenditure, underscoring the close linkage between transportation investment and economic activity. In contrast, a significant negative relationship is observed between GDP and transportation expenditure as a share of GDP, suggesting that higher-income countries invest more in transportation in absolute terms while allocating a smaller proportion of national output to this sector, likely reflecting efficiency gains and economies of scale in mature transportation systems. Hierarchical regression results indicate that transportation expenditure is a statistically significant predictor of GDP, with the baseline model accounting for a substantial share of cross-country variation. The inclusion of relative expenditure measures yields modest additional explanatory power, with the second model providing the most stable specification by effectively mitigating multicollinearity. Overall, the findings emphasize the continued importance of sustained transportation investment, while highlighting differences in investment intensity across stages of economic development. For developing economies, strategic and efficient transportation investment remains critical for supporting long-term economic growth. The study contributes to the literature by offering a comprehensive, cross-national perspective on the scaling of transportation expenditure with economic performance and its implications for transportation policy and planning.

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Published

2026-04-13

How to Cite

Al-Nabulsi, D., Alhawiti, A., Kwigizile, V., Oh, J.-. S., & Chowdhury, A. S. (2026). GLOBAL TRANSPORTATION EXPENDITURE AND ECONOMIC PERFORMANCE: A COMPREHENSIVE ANALYSIS OF TRANSPORTATION EXPENDITURE’S IMPACT ON ECONOMIC DEVELOPMENT IN KEY GLOBAL ECONOMIES (1990-2023). PLANNING MALAYSIA, 24(41). https://doi.org/10.21837/pm.v24i41.2019

Issue

Vol. 24 (2026): PLANNING MALAYSIA JOURNAL : Volume 24, Issue 2, 2026

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Article

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