The Effect of Transport Corridors Economic Strategies on Economic Development: Evidence from the Central Corridor Transit Transport Facilitation Agency

This study investigated the influence of transit corridor economic policies on Africa's economic growth. The research was driven by the necessity to comprehend the impact of economic strategies, such as fiscal and monetary policies, infrastructure investments, trade facilitation efforts, foreign direct investment incentives, employment generation programs, and sustainable development initiatives, on regional economic advancement within the corridor. Informed by the Resource-Based View (RBV) framework, the research employed a post-positivist paradigm, an explanatory research design, and a quantitative methodology. Data were gathered from 286 employees sourced from prominent logistics firms functioning in the Central Corridor member nations, specifically Tanzania, Rwanda, Burundi, Uganda, Zambia, Malawi, and the Democratic Republic of Congo. A sum of 282 legitimate questionnaires was received, indicating a response percentage of 98.6%. The data were examined by descriptive statistics, Pearson correlation analysis, and multiple regression analysis. The results indicated that economic strategies had a favourable correlation with economic development. Correlation analysis revealed a robust and statistically significant positive association between economic strategies and economic development (r = 0.601, p < 0.01), implying that advancements in fiscal policy, monetary policy, infrastructure investment, trade policy efficacy, investment incentives, job creation, and innovation support correlate with improved economic results. Regression findings additionally indicated that economic strategies exert a positive and statistically significant influence on economic development (β = 0.109, p = 0.041), while the effect size was very moderate. The results suggest that economic strategies enhance per capita income growth, infrastructure advancement, institutional backing, project execution efficacy, job creation, investment environment, and income distribution; however, their effectiveness is amplified when combined with complementary elements like technology integration, information systems, institutional capability, and infrastructure enhancement. The study determines that economic methods serve as significant catalysts for economic advancement in the Central Corridor, although they are not just adequate to produce considerable development results. Sustainable economic advancement necessitates a synchronised methodology that integrates economic tactics with technical, informational, and institutional measures. The research advocates for enhanced funding in transport and logistics infrastructure, alignment of trade regulations, encouragement of public-private collaborations, fortification of institutional capabilities, and incorporation of digital technologies to optimise the developmental effects of corridor projects.