Citation

Yetkiner H, Beyzatlar MA. Transp. Policy 2020; 97: 19-25.

Copyright

(Copyright © 2020, Elsevier Publishing)

DOI

10.1016/j.tranpol.2020.07.004

PMID

32834682 PMCID

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 demand-driven 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.

Language: en

Keywords

Income; Transportation; Passenger; Freight; Granger-causality; Wealth