World Summit on Management Sciences
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Accepted Abstracts

Effect of Transportation Infrastructure on Pakistans Economic Growth: The Gmm Approach

Sheraz Ahmed Choudhary*
University of Wah, Pakistan

Citation: Choudhary SA (2020) Effect of Transportation Infrastructure on Pakistan's Economic Growth: The Gmm Approach. SciTech Management Sciences 2020. Thailand 

Received: May 05, 2020         Accepted: May 07, 2020         Published: May 07, 2020

Abstract

The objective of the study is to examine the dynamic linkages between roads and railways transportation, gross capital fixed formation and their resulting impacts on Pakistan's economic growth by using an annual time series data from 1991-2015. The study employed some conventional co-integration tests, including time series unit root test and Johansen co-integration test for analyzing the variable's stationary series and long-run relationship between the variables respectively. Besides that, the study used robust least square regression technique that handles possible outliers in the endogenous and exogenous variables. The results confirm the first difference stationary series and having a long-run relationship between the variables. The results show that roads transportation has a positive effect while railways have a negative effect on country's economic growth. The results conclude that railways transportation required more policy oriented action plans to contribute in a given country by introducing fast railway trains, electrified trains, maintained safety and quality standards, better railway tracks, and comfortable seats, hence it may promote railways infrastructure for sustained economic growth.