Estimating the effects of income inequality, information communication technology, and transport infrastructure on transport-oriented household expenditures

Zahid Hussain (), Chunhui Huo (), Jabbar Ul-Haq (), Hubert Visas () and Muhammad Umair ()
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Zahid Hussain: Liaoning University
Chunhui Huo: Liaoning University
Jabbar Ul-Haq: University of Sargodha
Hubert Visas: University of International Business and Economics
Muhammad Umair: University of Karachi

Transportation, 2025, vol. 52, issue 5, No 12, 2117-2143

Abstract: Abstract This study investigates the influence of transport infrastructure, income inequality, information and communication technology on transport-oriented household expenditures. For this purpose, we chose the data set period from 1997 to 2021 for the 24 OECD countries and employed the cross-sectional auto-regressive distributed lagged (CS-ARDL) approach. Therefore, the outcomes reveal that income inequality drastically upsurges transport-oriented household expenditures, especially the pre-tax income share of the 100th percentile concentration of the super-rich. Besides, there is a convex relationship between income inequality and household expenditures. The magnitudes of information and communication technology (ICT) are negative and significant, implying that ICT reduces transport-related household expenditures by allowing them to access real-time information and choose their destination as well as travel modes from the comfort of their own homes. Also, the combined effect of income inequality and ICT reduces transport-related household expenditures in the sample countries. Thus, the findings recommend some policy implications and direct future research directions based on empirical evidence.

Keywords: Transport household expenditure; Income inequality; ICT; Transport infrastructure; OECD (search for similar items in EconPapers)
JEL-codes: O1 R2 R4 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11116-024-10486-5

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