<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

Does Railway Lines Investments Matter for Economic Growth?

ECONOMICS

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Does Railway Lines Investments Matter for Economic Growth?"}

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...

Does Railway Lines Investments Matter for Economic Growth?

Publié en ligne: 04 juin 2021

Pages: 11 - 24

Reçu: 31 déc. 2020

Accepté: 27 janv. 2021

DOI: https://doi.org/10.2478/eoik-2021-0004

Mots clés
economic growth, railway lines, VECM, United States

© 2021 Prince Fosu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Does Railway Lines Investments Matter for Economic Growth?

Publié en ligne: 04 juin 2021

Pages: 11 - 24

Reçu: 31 déc. 2020

Accepté: 27 janv. 2021

DOI: https://doi.org/10.2478/eoik-2021-0004

Mots cléseconomic growth, railway lines, VECM, United States

© 2021 Prince Fosu, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Mots clés
economic growth, railway lines, VECM, United States