ABSTRACT
Transportation infrastructure is a crucial component of any economy, as it enables the movement of goods and people, thereby facilitating trade and economic activity. This article investigates the impact of transportation infrastructure on economic growth in Azerbaijan using the ARDL bounds testing approach to estimate the relationships between the variables. The article uses annual time series data from 2000 to 2020 on variables such as real GDP, investment on transport infrastructure and freight turnover. The results show that transportation infrastructure has a significant positive impact on economic growth in Azerbaijan in the long run. Specifically, a 1% increase in investment on transport infrastructure leads to a 0.47% increase in real GDP in the long run, indicating that transportation infrastructure plays a vital role in promoting economic growth in Azerbaijan.The findings of this study have important policy implications for Azerbaijan. Investments in transportation infrastructure should be prioritized to ensure that the country s infrastructure is of high quality and meets the needs of the growing economy. This study contributes to the literature on the relationship between transportation infrastructure and economic growth and provides insights that can inform policy decisions in Azerbaijan and other developing countries facing similar challenges.

Keywords: Transportation infrastructure, economic growth, ARDL bounds testing, economic activity, investment.

JEL Classification: R40, O18, H54