Policy Implications on Transport Infrastructure–Trade Dynamics: Case of Turkey

Duygu Şahan and Okan Tuna
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Duygu Şahan: Maritime Faculty, Dokuz Eylül University, Izmir 35220, Turkey
Okan Tuna: Maritime Faculty, Dokuz Eylül University, Izmir 35220, Turkey

Logistics, 2021, vol. 5, issue 3, 1-16

Abstract: Transportation has a mediating position in international trade formation and in the past few decades, Turkey has invested substantially in transport infrastructure to increase connectivity and integration in global transport networks. Still, limited research has been conducted to understand channels and scope of the transport infrastructure development impacts on foreign trade. The objective of this study is to evaluate short-run and long-run causal linkages between transport infrastructure, exports and imports in Turkey for the period between 1987–2019. An autoregressive distributed lag (ARDL) model is developed considering road and rail transport infrastructure components as well as information and communication technology (ICT) infrastructure as a complement to quality transport networks. Results suggest that a speedy road network serves as a locomotive in trade development whereas rail infrastructure can be beneficial if a holistic connectivity plan is developed in a long-term perspective to improve multimodal transportation under a comprehensive, sustained transport policy. Besides, benefits of transport infrastructure investment can be realized in favor of export promotion rather than import growth if a comprehensive policy is followed. In that way transport infrastructure investment would become a stronger instrument to accomplish export competitiveness.

Keywords: international logistics; transport infrastructure; transport economics (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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