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Regional Economic Output and Public Surface Transportation Infrastructure: A Spatial Granger Approach

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  • Zhenhua Chen

    (University of Southern California)

  • Kingsley B. Haynes

    (George Mason University)

Abstract

This paper expands upon the classical Granger causality test with spatial dimensions to investigate the causal linkages between regional economic output and surface transportation infrastructure with a focus on the Northeast Corridor in the United States. To improve the validity of estimation, a panel data set of surface transportation infrastructure including highways, public intercity railways, and public transit, which are measured in real monetary value for the period 1991-2009, is adopted. Granger causality tests with integrations of various forms of spatial spillover interactions are analyzed in different spatial vector autoregressive models. The empirical results reveal that the spatial Granger causality test is able to capture a broader geographic scale of causality than the classical approach, but the causality between regional economic output and surface transportation infrastructure is sensitive to the model specifications.

Suggested Citation

  • Zhenhua Chen & Kingsley B. Haynes, 2014. "Regional Economic Output and Public Surface Transportation Infrastructure: A Spatial Granger Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 44(3), pages 263-279, Winter.
    • Handle: RePEc:rre:publsh:v44:y:2014:i:3:p:263-279
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    More about this item

    Keywords

    regional economic output; public surface transportation; Granger causality; spillovers;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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