Correlation Between Freight Transport Industry and Economic Growth – Panel Analysis of CEE Countries

  • Siniša Vilke University of Rijeka, Faculty of Maritime Studies
  • Davor Mance University of Rijeka, Faculty of Economics
  • Borna Debelić University of Rijeka, Faculty of Maritime Studies
  • Marinko Maslarić University of Novi Sad, Faculty of Technical Sciences
Keywords: freight transport industry, logistics, economic growth, panel analysis, relationship

Abstract

The paper tests for statistical association between employment and value added of freight transport industry and its component activities against overall economy in a ten-year panel ranging from 2008 to 2017 of the thirteen newest European Union member countries. In this paper, the nature of correlation between economic growth as the independent variable and freight transport industry as a dependent variable is examined. To achieve stationarity, and to lose autocorrelation and the idiosyncratic effects, the variables are first differenced. The results of the “Granger causality” tests show the null hypothesis of no-causation may be rejected for most conjectures with high F-Statistics as well as high statistical significance. The results of the Panel EGLS cross-section fixed effects do not reject the results gained by the Granger test, and the same may be said for the Panel Generalised Method of Moments First Differences test. The result of the Arellano-Bond test shows no serial correlation in the residuals. It has been concluded that changes in overall economy (value added and employment) have a significant and measurably strong impact on freight transportation and warehousing sector. This conclusion is useful in assessing future impacts on freight transport industry, especially as a consequence of contingent events.

References

ADB. Transport efficiency through logistics development: Policy study. Mandaluyong City, Philippines: Asian Development Bank; 2012.

Prusa P, Jovcic S, Samson J, Kozubikova Z, Kozubik A. Using a non-parametric technique to evaluate the efficiency of a logistics company. Transport Problems. 2020;15(1): 153-161. DOI: 10.21307/tp-2020-014

Burdzik R, Ciesla M, Sladkowski A. Cargo loading and unloading efficiency analysis in multimodal transport. Promet – Traffic&Transportation. 2014;26(4): 323-331. DOI: 10.7307/ptt.v26i4.1356

Saidi S, Hammami S. Modeling the causal linkages between transport, economic growth and environmental degradation for 75 countries. Transportation Research Part D. 2017;53: 415-427. DOI: 10.1016/j.trd.2017.04.031

Gao Y, Chang D, Fang T, Luo T. The correlation between logistics industry and other industries: An evaluation of the empirical evidence from China. The Asian Journal of Shipping and Logistics. 2018;34(1): 027-032. DOI: 10.1016/j.ajsl.2018.03.004

Mankowski C, Weiland D, Abramovic B. Impact of railway investment on regional development-case study of Pomeranian metropolitan railway. Promet – Traffic&Transportation. 2019;31(6): 669-679. DOI: 10.7307/ptt.v31i6.3231

OECD/ITF. Globalisation, crisis and transport. Discussion paper No.:2009-12 of the International Transport Forum, Leipzig, 2009.

Moschovou TP. Freight transport impacts from the economic crisis in Greece. Transport Policy. 2017;57: 51-58. DOI: 10.1016/j.tranpol.2017.04.001

Kaplan LC, Kohl T, Martinez-Zarzoso I. The effects of the CEECS's accession on sectoral trade: A value added perspective. University of Gottingen, Center for European, Governance and Economic Development Research. Discussion Papers: 272, 2016.

Dedik M, Gasparik J, Zahumenska Z, Luptak V, Hrebicek Z. Proposal of the measures to increase the competitiveness of rail freight transport in the EU. Nase more. 2018;65(4): 202-207. DOI: 10.17818/NM/2018/4SI.7

Husakova N. Tools for effective application of eco-logistics. In: Proceedings of the Carpathian Logistics Congress - CLC' 2013, 9-11 December 2013, Cracow, Poland. Ostrava, Czech Republic: TANGER Ltd; 2014. p. 80-84.

Fedorko G, Molnar V, Honus S, Neradilova H, Kampf R. The application of simulation model of a milk run to identify the occurrence of failures. International Journal of Simulation Modelling. 2018;17(3): 444-457. DOI: 10.2507/IJSIMM17(3)440

Mohammad R. The relationship between logistics and economic development in Indonesia: Analysis of time series data. Journal Teknik Industri. 2013;15(2): 119-124. DOI: 10.9744/jti.15.2.119-124

Zhu F, Wu X, Gao Y. Decomposition analysis of decoupling freight transport from economic growth in China. Transportation Research Part D. 2020;78: 102201. DOI: 10.1016/j.trd.2019.12.003

Fang B, Han X. Relating transportation to GDP: Concepts, measures and data. MacroSys Research and Technology. Discussion Papers, 2000.

Gao Y, Zhang Y, Li H, Peng T, Hao S. Study on the relationship between comprehensive transportation freight index and GDP in China. Procedia Engineering. 2016;137: 571-580. DOI: 10.1016/j.proeng.2016.01.294

Alises A, Vassallo JM. The impact of the structure of the economy on the evolution of road freight transport: A macro analysis from an input-output approach. Transportation Research Procedia. 2016;14: 2870-2879. DOI: 10.1016/j.trpro.2016.05.404

Brunel J. Freight transport and economic growth: An empirical explanation of the coupling in the EU using panel data. Discussion Papers HAL Id: halshs-00004826, 2005.

Gani A. The logistics performance effect in international trade. The Asian Journal of Shipping and Logistics. 2017;33(4): 279-288. DOI: 10.1016/j.ajsl.2017.12.012

Muller S, Klauenberg J, Wolfermann A. How to translate economic activity into freight transportation? Transportation Research Procedia. 2015;8: 155-167. DOI: 10.1016/j.trpro.2015.06.051

Rabinovich E, Cheon S. Expanding horizons and deepening understanding via the use of secondary data sources. Journal of Business Logistics. 2011;32(4): 303-316. DOI: 10.1111/j.0000-0000.2011.01026.x

Ellram LM, Tate WL. The use of secondary data in purchasing and supply (P/SM) management research. Journal of Purchasing & Supply Management. 2016;22(4): 250-254. DOI: 10.1016/j.pursup.2016.08.005

Busse C. A procedure for secondary data analysis: Innovation by logistics service providers. Journal of Supply Chain Management. 2010;46(4): 44-58. DOI: 10.1111/j.1745-493X.2010.03205.x

European Commission. Directorate General for Internal Market, Industry, Entrepreneurship and SMEs. SME Performance Review. Brussels; 2019.

NACE. Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains. Official Journal of the European Union. 2006;393: 1-39. DOI: http://data.europa.eu/eli/reg/2006/1893/oj

Arellano M, Bond S. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies. 1991;58(2): 277-297. DOI: 10.2307/2297968

Published
2021-08-05
How to Cite
1.
Vilke S, Mance D, Debelić B, Maslarić M. Correlation Between Freight Transport Industry and Economic Growth – Panel Analysis of CEE Countries. Promet - Traffic&Transportation. 2021;33(4):517-26. DOI: 10.7307/ptt.v33i4.3688
Section
Articles