Road-based transport infrastructure and economic growth in Haryana: a causality analysis

The present study was an attempt to examine the causal relationship between road infrastructure and economic growth in Haryana over the period of 2004–2018. This paper has used causality analysis to see whether road infrastructure induced the economic growth or economic growth prompted the road infrastructure or both stimulate each other. The study found that economic growth in Haryana, capital investment, and road infrastructure (particularly national highways) are mutually reinforcing. On the basis of the finding, it can be suggested that the achievement of higher growth through road infrastructure would be due to several direct and indirect benefits imparted to the economy. Therefore, the government should upscale and expand the road infrastructure in the state to retrieve further fruits in the form of better economic growth.