The Economic Impact of Road Accidents: The Case of Sri Lanka

Thangamani Bhavan

South Asia Economic Journal, 2019, vol. 20, issue 1, 124-137

Abstract: The purpose of this study is to disclose accident-related indices and investigate the extent to which the road accidents impact on the economic performance of Sri Lanka during the period from 1977 to 2016. Annual time-series data are used to evaluate the accident indices for econometric analysis. Augmented Dickey–Fuller (ADF) unit root analysis and Johansen’s maximum likelihood estimator of the parameters of a cointegrating vector error correction model (VECM) are employed to test the stationary properties of the time series and to examine the long-run relationship between the variables, respectively. The results derived from the analysis confirm the existence of long-run relationship between the accident-related indices and macroeconomic indicators. The long-run elasticity values imply the signs and magnitude of impact of the accident indices on macroeconomic indicators. JEL: R41, H510, I310, I32

Keywords: Road accidents; fatality index; Sri Lanka; cointegration; health expenditure per capita; economic growth (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:soueco:v:20:y:2019:i:1:p:124-137

DOI: 10.1177/1391561418822210

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