Spring 2014 (Vol. 53, No. 1)

Dynamics of Transport Infrastructure, Exports and Economic Growth in the United States

Abstract

This paper focuses on the dynamic relationships among transport infrastructure, exports and economic growth in the United States using a multivariate time-series analysis. Results suggest that the formation of highways and streets affects economic growth indirectly through enhancing the capital stock of non-transport infrastructure and crowding in private capital. The reverse causality from economic output to highway and street infrastructure is observed. Aggregate capital stock of non-transport infrastructure, excluding national defense, has sustainable positive effects on economic output and exports over a number of years. Empirical evidence also shows that highway and street infrastructure and non-transport infrastructure Granger cause exports.

by Tingting Tong, T. Edward Yu, and Roland K. Roberts

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