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The relationship among railway networks, energy consumption, and real added value in Italy. Evidence form ARDL and Wavelet analysis

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  • Magazzino, Cosimo
  • Giolli, Lorenzo

Abstract

Existing studies reveal opposing results regarding the economic growth and infrastructure nexus, which emanates from the differences in scale, timing and stage of development. In this paper, we explore the relationship between railway networks and real GDP controlling for energy consumption, over the period 1861–1970 in Italy. The empirical strategy uses both AutoRegressive Distributed Lags (ARDL) model and the Wavelet Analysis (WA), which is able to adopt to scale and time support, thereby enabling one to escape the Heisenberg's curse. Our applied findings show that the two series are generally positive correlated (being in phase), but also that railway networks cause real value added in the long-run. Thus, through an innovative approach, we can confirm previous results in literature: in fact, railway networks represent a determinant of economic growth in the Italian case.

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  • Magazzino, Cosimo & Giolli, Lorenzo, 2021. "The relationship among railway networks, energy consumption, and real added value in Italy. Evidence form ARDL and Wavelet analysis," Research in Transportation Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:retrec:v:90:y:2021:i:c:s0739885921000986
    DOI: 10.1016/j.retrec.2021.101126
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    More about this item

    Keywords

    Railway networks; GDP; Time-series; ARDL; Wavelet analysis; Italy;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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