The correlation between transport industry and economic growth : The case of OECD countries

Abstract

In the present study where the correlation between economic growth and transportation investments was scrutinized, whether there was an interaction between transportation investments and economic growth in OECD countries was investigated. Thus, Pedroni and Kao cointegration analysis, FMOLS and DOLS analyses and Canning and Pedroni long-term causality analysis were conducted on 1995-2016 transportation industry infrastructure investments and gross domestic product per capita data for 25 OECD countries included in the study sample. The study findings demonstrated that per capita gross domestic increased the infrastructure investments in the transportation industry in the long-term, however the causality was reciprocal.