Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Analysis of the Influence of Infrastructure Development on Economic Growth in Djibouti

Version 1 : Received: 23 May 2024 / Approved: 23 May 2024 / Online: 23 May 2024 (11:18:38 CEST)

How to cite: Abdillahi Waberi, A. Analysis of the Influence of Infrastructure Development on Economic Growth in Djibouti. Preprints 2024, 2024051539. https://doi.org/10.20944/preprints202405.1539.v1 Abdillahi Waberi, A. Analysis of the Influence of Infrastructure Development on Economic Growth in Djibouti. Preprints 2024, 2024051539. https://doi.org/10.20944/preprints202405.1539.v1

Abstract

Infrastructure such as transport, electricity, telecommunications, and sanitation are indispensable drivers for improving the country’s social and economic development. The industrial, agricultural, fisheries and service sectors are also key tools for the country's economic growth. This study aims to analyze the influence of infrastructure development on Djibouti’s economic growth and determine the other economic sectors. This study employs multiple regression analyses from Eviews Software to establish a correlation between these variables and Djibouti’s economic growth, utilizing data spanning from the period 2013 to 2022. The results reveals that mobile cell phone subscriptions, and the people using the health service management, industry, and service have a positive and highly significant influence on Djibouti's economic growth. The study found that access to electricity has a positive influence on economic growth in Djibouti, but is not statistically significant. In addition, the study shows that agriculture, forestry, and fisheries have a negative influence on economic growth in Djibouti, but are statistically significant. Therefore, we recommend that the Government of Djibouti strengthen and ensure the benefit of developing electricity infrastructure in Djibouti and the agriculture, forestry, and fisheries sectors to achieve sustainable economic growth in the coming years.

Keywords

Infrastructure development, economic growth, and other variables sectors 

Subject

Business, Economics and Management, Business and Management

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