Effect of transportation infrastructure on economic growth in India: The VECM approachRudra P. Pradhan and Tapan Bagchi Research in Transportation Economics, 2013, vol. 38, issue 1, 139-148 Abstract: This paper examines the effect of transportation (road and rail) infrastructure on economic growth in India over the period 1970–2010. Using Vector Error Correction Model (VECM), the paper finds bidirectional causality between road transportation and economic growth. It also finds bidirectional causality between road transportation and capital formation, bidirectional causality between gross domestic capital formation and economic growth, unidirectional causality from rail transportation to economic growth and unidirectional causality from rail transportation to gross capital formation. The paper suggests that expansion of transport infrastructure (both road and rail) along with gross capital formation will lead to substantial growth of the Indian economy. Therefore, within its stated scope, this study suggests that a suitable transport policy should be retained to boost transportation infrastructure and hence sustainable economic growth in India. Keywords: Transport infrastructure; Economic growth; VECM (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:retrec:v:38:y:2013:i:1:p:139-148 Ordering information: This journal article can be ordered from DOI: 10.1016/j.retrec.2012.05.008 Access Statistics for this article Research in Transportation Economics is currently edited by M. Dresner More articles in Research in Transportation Economics from Elsevier |
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