IMPACT OF URBAN CONNECTIVITY ON ECONOMIC GROWTH: QUANTITATIVE STUDY

This paper examines the role of increased urban connectivity (via roads and railways) on economic growth in India. Effective road and railway infrastructure save time on trips, reduce transportation costs, improve access to markets, and improve economic productivity. Using data from 15 states for the time period 2011to 2019 the effect of highway and railway routes on regional economic growth has been found. This study employs a fixed effects panel regression model while commenting upon the relationship between the changes in connectivity and the Gross State Domestic Product (GSDP) of a state. The results of the regression analysis demonstrate a strong positive relationship between increased connectivity, through road and rail networks, on economic performance of the region. The research thus concludes that increase in investment for transport infrastructure is often viewed as a means of improving mobility as well as it can also provide an essential avenue through which regional disparity can be reduced. This finding supports the hypothesis that better connectivity reduces transaction costs, facilitates trade, enhances labour mobility, and encourages the diffusion of economic activities across regions. Thus, urban connectivity enables urbanization, and ultimately, ensures economic growth is sustained and spread across India.