An Empirical Study On The Effect Of Transportation On Economic Growth In China

Traffic-transportation is the basic and proactive industry of national economy, and its development has enormous bearing on national economy. After the"Reform and Opening"policy has been implemented in China, our industry and agriculture have been advancing rapidly, besides, the foundation of Chinese economy has also been increasingly boosted up. With the rapid urbanization process, we have required more and more traffic Convenience between city and county. The relationship between intercity transportation and the regional economic development has drawn more and more attention. In this sense, it becomes advisable to conduct an empirical analysis of the relations between the Traffic-transportation and the Economic development so as to provide constructive references and supports for the making of traffic-transportation development policies.This paper is organized as follows. At first I define the research question, review the related research work in this area all over the world, set up the research method and the framework, and address the main topic. And I find the joint that connects the transportation and regional economic development. This work builds the foundation for the research of the interaction mechanism between the transportation and the economic development. We comparatively analyzed the development results of our country's comprehensive transportation system from several ways in the past years, especially in latest 20 years.Then, I do the empirical analysis of the relationship between regional economic development and transportation in China. In this paper, there is a study on the relationship between intercity transportation and economic development. In order to analyze the relationship between transportation and economy development, we selected several indexes to weigh the impact between them. Through Co-integration model, Error Correction model (ECM), we found that there has a long relationship in them. The error correction model (ECM) shows that economy adjust to its long-run equilibrium at a high rate in the first quarter. And through Granger-causality test, the results show that economic growth is the Granger causality of transportation growth, and transportation growth is also the Granger causality of economic growth at several ways. From the view of results, they undoubtedly influence each other and boost each other, we can classify it in two ways: the direct and indirect effect one. And I provide some suggestions and reasonable strategies about regional transportation development in China.I hope the qualitative and quantitative analyses in this paper will be helpful for transportation development in China.