Investigating the causal relationship between transportation infrastructure, financial penetration and economic growth in G-20 countries

摘要

This study examined the interactions between transportation infrastructure, financial penetration, and economic growth in the G-20 countries from 1961 to 2016. The aim was to investigate whether temporal causality exists between the variables. Using the panel vector error-correction model, we determined the long-run and short-run links between the variables. The study's most robust finding is that both financial penetration and transportation infrastructure stimulate economic growth in the long run. Short-run results, on the other hand, were non-uniform and depended on the specific measure of financial penetration and transportation infrastructure utilized.