TY - JOUR
T1 - Causality between transportation infrastructure and economic development in Pakistan
T2 - An ARDL analysis
AU - Alam, Khalid Mehmood
AU - Li, Xuemei
AU - Baig, Saranjam
AU - Ghanem, Osman
AU - Hanif, Salman
N1 - Funding Information:
The research was supported by National Natural Science Foundation of China , project No. 51778047 and One Belt One Road infrastructure Network, project No. 2017JBZ005 .
Publisher Copyright:
© 2020 Elsevier Ltd
PY - 2021/9
Y1 - 2021/9
N2 - This paper examines the relationship between transport infrastructure and economic development in Pakistan. An autoregressive distributive lag (ARDL) and vector error correction model (VECM) is applied over the period 1971–2017. The results indicate that there is a long-run and causal relationship between transport infrastructure and economic development. Transport infrastructure has long-run positive impact on economic development. Furthermore, Granger causality test shows a unidirectional causality in long-run running from transport infrastructure to economic development. Interestingly, the impact of air infrastructure on economic development is statistically insignificant in long-run and short-run. The new results from this research provides a comprehensive picture of determinants of economic development from transport infrastructure in Pakistan and these new findings not only help policy makers but also can help to advance the current literature. Therefore, it is suggested that the government of Pakistan should concentrate more to increase the transport infrastructure for higher economic development.
AB - This paper examines the relationship between transport infrastructure and economic development in Pakistan. An autoregressive distributive lag (ARDL) and vector error correction model (VECM) is applied over the period 1971–2017. The results indicate that there is a long-run and causal relationship between transport infrastructure and economic development. Transport infrastructure has long-run positive impact on economic development. Furthermore, Granger causality test shows a unidirectional causality in long-run running from transport infrastructure to economic development. Interestingly, the impact of air infrastructure on economic development is statistically insignificant in long-run and short-run. The new results from this research provides a comprehensive picture of determinants of economic development from transport infrastructure in Pakistan and these new findings not only help policy makers but also can help to advance the current literature. Therefore, it is suggested that the government of Pakistan should concentrate more to increase the transport infrastructure for higher economic development.
KW - ARDL
KW - Causality
KW - Cointegration
KW - Economic development
KW - Transport infrastructure
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U2 - 10.1016/j.retrec.2020.100974
DO - 10.1016/j.retrec.2020.100974
M3 - Article
AN - SCOPUS:85093651504
SN - 0739-8859
VL - 88
JO - Research in Transportation Economics
JF - Research in Transportation Economics
M1 - 100974
ER -
