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