LINKING TRANSPORTATION INFRASTRUCTURE INVESTMENTS AND ECONOMIC GROWTH: ON THE CAUSALITY TRAIL

The link between investments in transportation infrastructure and its impact on economic growth has been the subject of research for a number of years. Yet there is some controversy over the degree to which transportation infrastructure investments impact economic growth, functional forms chosen to model the relationship, and long term impacts on investment and employment. One fact can be stated with certainty - past research suggests a positive impact between investments in transportation infrastructure and the nations rate of growth. The purpose of this paper is to establish a methodology to address the causality issue between infrastructure investment and productivity growth. Through the construction of a Vector Autoregressive Model which incorporates both short and long term dynamics, the authors will be able to test for causality between infrastructure investment and productivity growth. For the covering abstract of this conference, see IRRD number 872510. (A)

Language

  • English

Media Info

  • Pagination: p. 217-231

Subject/Index Terms

Filing Info

  • Accession Number: 00726276
  • Record Type: Publication
  • Source Agency: Transportation Association of Canada (TAC)
  • Files: ITRD
  • Created Date: Oct 28 1996 12:00AM