ECONOMIC GROWTH, MOTORISATION AND ROAD TRAFFIC SAFETY IN NIGERIA
1Oluwayemi A. Ayodeji , 2Yinusa O. Dauda & 3*Lukman O. Oyelami
1Economics Department, Obafemi Awolowo University, Ile-ife, Osun State
2Economics Department, Obafemi Awolowo University, Ile-ife, Osun State
3Economics Unit, Distance Learning Institute, University of Lagos Akoka, Yaba Lagos.
The yearning for increasing economic growth has been the focus of many policy makers in the country. This noble objective has come with an increasing level of household wealth which is displayed in form of increasing motorization and may as well compromise the traffic safety in the country. In this connection, this study examines the dynamic causal relationship among economic growth, motorisation and road traffic safety in Nigeria. This is with a view to determining the nexus of economic growth, motorisation and road traffic safety in the country for the period of 1970-2016. To achieve this, secondary data on Gross Domestic Product, Gross Domestic Product Per Capita, Population, nominal exchange rate and the general level of education in the country were sourced from World Development Indicator, Central Bank of Nigeria and Federal Road Safety. The data were analyzed and estimated using the Autoregressive Distributed Lag (ARDL). This was necessary to address the expected endogenity problem and non-uniform stationarity level in our variables. The results from the study demonstrate a unidirectional causal relationship flowing from motorisation to road traffic crash. Similarly, there is unidirectional causal relationship flowing from economic growth to motorisation in Nigeria. In addition, increasing road traffic crash can hamper economic growth. The study concludes that economic growth contributes to road traffic crash through increasing motorisation in Nigeria. However, an improved level of drivers’ education and regulatory effectiveness are required to stem the ugly trend.
Key Words: Macroeconomics; Safety; ARDL; Nigeria.