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

Abstract

Transport corridors are essential for regional integration, trade facilitation, and economic development, but their performance depends not only on infrastructure but also on effective legal and regulatory frameworks. This study examined the influence of transport corridor legal strategies and regulatory frameworks on the economic development of the Central Corridor. Guided by Institutional Theory, the study adopted a post-positivist philosophy and a quantitative explanatory design. Data were collected through structured questionnaires from employees of logistics companies operating within the Central Corridor member states and analyzed using descriptive statistics, correlation, and multiple regression. The findings show that legal and regulatory strategies have a positive and significant influence on economic development. Effective frameworks enhance infrastructure utilization, improve the investment climate, increase project implementation efficiency, strengthen institutional coordination, and facilitate trade. The results support Institutional Theory by highlighting that strong legal institutions reduce transaction costs, improve regulatory certainty, and create an enabling environment for sustainable growth. The study concludes that harmonized legal and regulatory frameworks are critical for improving the performance of the Central Corridor and recommends strengthening regional legal coordination, enforcement, and institutional collaboration to enhance competitiveness and sustainable economic development.

Keywords:       legal strategies, regulatory frameworks, economic development, Institutional Theory, transport corridors.