1. bookVolume 9 (2021): Issue 1 (June 2021)
Journal Details
License
Format
Journal
First Published
08 Sep 2015
Publication timeframe
2 times per year
Languages
English
access type Open Access

Does Railway Lines Investments Matter for Economic Growth?

Published Online: 04 Jun 2021
Page range: 11 - 24
Received: 31 Dec 2020
Accepted: 27 Jan 2021
Journal Details
License
Format
Journal
First Published
08 Sep 2015
Publication timeframe
2 times per year
Languages
English
Abstract

The $20.81 trillion U.S. economy relies on a vast infrastructure network to thrive; however, empirical studies that examined that impact of infrastructure on economic growth in the U.S. are limited. This study’s principal objective was to examine the effect of railway lines on economic growth using annual data from 1980 to 2016 and cointegration analysis. The results showed a positive and significant impact of railway lines on economic growth in the long-run and short-run. The impulse response analysis indicates that shocks to railway lines initially cause GDP growth rates to increase and decrease continuously. The variance decomposition analysis also suggests that overtime, railway lines contribute largely to the variations in economic growth followed by inflation and population. This study’s outcome has important implications not only for the U.S. economy but also for developing and emerging countries. The results suggest that railway lines investments matter for economic growth in the U.S.

Keywords

JEL Classification

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