The Granger-causality between wealth and transportation: A panel data approach


Yetkiner H., BEYZATLAR M. A.

TRANSPORT POLICY, vol.97, pp.19-25, 2020 (SSCI) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 97
  • Publication Date: 2020
  • Doi Number: 10.1016/j.tranpol.2020.07.004
  • Journal Name: TRANSPORT POLICY
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, Aquatic Science & Fisheries Abstracts (ASFA), Business Source Elite, Business Source Premier, Geobase, Index Islamicus, PAIS International, Pollution Abstracts, Public Affairs Index, Civil Engineering Abstracts
  • Page Numbers: pp.19-25
  • Keywords: Granger-causality, Wealth, Income, Transportation, Freight, Passenger, ECONOMIC-GROWTH, AIR TRANSPORT, INFRASTRUCTURE, COINTEGRATION, URBANIZATION, DEMAND, INDIA, CHINA, GDP
  • Dokuz Eylül University Affiliated: Yes

Abstract

This study examines the causal relationship between wealth and transportation. The study first develops two alternating theoretical frameworks between wealth and transportation: one in which transportation is demanddriven and one in which transportation has dual role, demand-driven and supply-driving. Next, the study undertakes Granger-causality estimations for a panel of 18 countries over the period 1970-2017. It is found that the dominant Granger-causality relationship is bidirectional for majority of countries. The study also shows that there is high consistency in the Granger-causality relationship between wealth and transportation, and income and transportation. The study has three important contributions: First, the relationship between wealth and transportation is shown both theoretically and empirically. Second, transportation is shown to have dual role in an economy. Finally, it is shown that the wealth-transportation relationship and the transport-income relationship are equally robust and consistent.