Transportation- Communication Infrastructure and Economic Growth: The Panel VAR Application.

Previous studies generally find mixed empirical evidence on the relationship between transportation- communication infrastructure investment and economic growth. In this paper, we re-examine the causal relationship between transportation- communication infrastructure investment and economic growth by panel Granger causality test and by utilizing a richer panel data set that includes 34- OECD countries over the period 1960-2012. Our empirical findings strongly support the existence of cointegration between transportation- communication infrastructure investment and economic growth in the long run and have bidirectional Granger causality effects. [ABSTRACT FROM AUTHOR]