Investigating causality between transport infrastructure and urbanization: A state-level study of India (1991–2011)

Tuhin Subhra Maparu and Tarak Nath Mazumder

Transport Policy, 2021, vol. 113, issue C, 46-55

Abstract: Transport infrastructure has often been observed to influence urbanization which is again associated with economic development and improvement in quality of life. However, the direction of causality between the two is unclear as it may depend on the particular context which is very much determined by the socio-economic conditions, political policy decisions, etc. Also, the role of different transport sectors (e.g. road, rail, port, etc.) may change over different phases of development and historic conditions. This study, thus, attempts to explore the causal direction between transport infrastructure and urbanization during the post-liberalization era in India (1991–2011). It has used eleven variables to represent various transport sectors and also categorizes the Indian states into leading, intermediate and lagging groups to find out how the role of various transport sectors changes with various phases of development. The study has used dynamic time series models such as Vector Error-Correction (VEC) and Vector Auto-Regression (VAR) for this purpose, which is absent in the present literature. Results showed support in favor of modernization theory of urbanization in most of the cases.

Keywords: Transport infrastructure; Urbanization; Granger causality; Cointegration; Vector error-correction; Vector auto-regression (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.tranpol.2020.03.008

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