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

Zhenhua Chen and Kingsley B. Haynes
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Zhenhua Chen: University of Southern California
Kingsley B. Haynes: George Mason University

The Review of Regional Studies, 2014, vol. 44, issue 3, 263-279

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.

Keywords: regional economic output; public surface transportation; Granger causality; spillovers (search for similar items in EconPapers)
JEL-codes: C23 R11 R42 R53 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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