Skip to main content
Log in

Convergence in transportation measures across the EU-15

  • Published:
Transportation Aims and scope Submit manuscript

Abstract

This is the first study in the literature to investigate the convergence in transportation measures. To this end, we conjectured a transportation convergence equation and tested it via Difference GMM and System GMM methods, using 4-year span panel data from 15 European Union countries (EU-15) for the period 1970–2013. The results provide strong evidence for the existence of unconditional convergence among the EU-15 countries in two transportation measures, namely, inland freight transportation per capita, and inland passenger transportation per capita. The estimates show that the convergence is even stronger when control variables are used. We conclude that the income convergence of EU-15 in the process of economic integration is also strongly evident in the transportation sector.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Notes

  1. EU-15 are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom.

  2. The command “xtabond2” is used in Stata (v.13) for Difference GMM and System GMM estimations, and the instrument matrix is collapsed with the command “collapse” available in Stata, as mentioned in Roodman (2009).

References

  • Abramovitz, M.: Catching up, forging ahead, and falling behind. J. Econ. History 46(2), 385–406 (1986)

    Article  Google Scholar 

  • Arellano, M., Bond, S.: Some tests of specification for panel data: monte carlo evidence and an application to employment equations. Rev. Econ. Stud. 58(2), 277–297 (1991)

    Article  Google Scholar 

  • Arellano, M., Bover, O.: Another look at the instrumental variable estimation of error-components models. J. Economet. 68(1), 29–51 (1995)

    Article  Google Scholar 

  • Bahadır, B., Valev, N.: Financial development convergence. J. Bank. Finance 56, 61–71 (2015)

    Article  Google Scholar 

  • Baier, S.L., Bergstrand, J.H.: The growth of world trade: tariffs, transport costs and income similarity. J. Int. Econ. 53(1), 1–27 (2001)

    Article  Google Scholar 

  • Banerjee, A., Duflo, E., Qian, N.: On the road: access to transportation infrastructure and economic growth in China. NBER Working Paper No: 17897 (2012)

  • Banister, D.: Transport and economic development: reviewing the evidence. Transport Reviews 32(1), 1–2 (2012)

    Article  Google Scholar 

  • Baumol, W.: Productivity growth, convergence and welfare: what the long run data show. Am. Econ. Rev. 76(1), 72–85 (1986)

    Google Scholar 

  • Beugelsdijk, M., Eijffinger, S.C.W.: The effectiveness of structural policy in the European Union: an empirical analysis for the EU-15 in 1995–2001. J. Common Mark. Stud. 43(1), 37–51 (2005)

    Article  Google Scholar 

  • Beyzatlar, M.A., Karacal, M., Yetkiner, H.: Granger-causality between transportation and GDP: a panel data approach. Transp. Res. Part A 63, 43–55 (2014)

    Google Scholar 

  • Blundell, R., Bond, S.: Initial conditions and Moment restrictions in dynamic panel data model. J. Economet. 87(1), 115–143 (1998)

    Article  Google Scholar 

  • Blundell, R., Bond, S.: GMM Estimation with persistent panel data: an application to production functions. Economet. Rev. 19(3), 321–340 (2000)

    Article  Google Scholar 

  • Blundell, R., Bond, S., Windmeijer, F.: Estimation in dynamic panel data models: Improving on the performance of the standard GMM Estimator. In: Baltagi, B.H., Fomby, T.B., Carter Hill, R. (eds.) Nonstationary Panels, Panel Cointegration, and Dynamic Panels, vol. 15, pp. 53–91. Emerald Group Publishing Limited, Bingley (2001)

    Chapter  Google Scholar 

  • Bond, S., Hoeffler, A. and Temple, J., 2001. GMM Estimation of Empirical Growth Models. Working Paper, Nuffield College, University of Oxford

  • Bosch, J.: Panorama of transport: statistical overview of transport in the European Union (1970–2000). EuroStat, Luxembourg (2003)

    Google Scholar 

  • Bose, N., Haque, M.E.: Causality between public investment in transport and communication and economic growth. J. Econ. Dev. 30(1), 95–106 (2005)

    Google Scholar 

  • Caselli, F., Esquivel, G., Lefort, F.: Reopening the convergence debate: a new look at cross-country growth empirics. J. Econ. Growth 1(3), 363–389 (1996)

    Article  Google Scholar 

  • De Long, J.B.: Productivity growth, convergence, and welfare: Comment. Am. Econ. Rev. 78(5), 1138–1154 (1988)

    Google Scholar 

  • Deng, T.: Impacts of transport infrastructure on productivity and economic growth: recent advances and research challenges. Transp. Rev. 33(6), 686–699 (2013)

    Article  Google Scholar 

  • Deng, T., Shao, S., Yang, L., Zhang, X.: Has the transport-led economic growth effect reached a peak in China? A panel threshold regression approach. Transportation 41(3), 567–587 (2014)

    Article  Google Scholar 

  • Gleave, S.D., 2008. Ex post evaluation of cohesion policy programmes 2000–2006 work package 5A: transport. In: First Intermediate Report prepared for the European Commission Directorate General for Regional Policy Unit Evaluation and Availability

  • Hansen, L.P.: Large sample properties of generalized method of moments estimators. Econometrica 50(4), 1029–1054 (1982)

    Article  Google Scholar 

  • Hitiris, T., Nixon, J.: Convergence of health care expenditure in the EU countries. Appl. Econ. Lett. 8(4), 223–228 (2001)

    Article  Google Scholar 

  • Hoeffler, A.: The Augmented Solow Model and the African growth debate. Oxford Bull. Econ. Stat. 64(2), 135–158 (2002)

    Article  Google Scholar 

  • Hong, J.: Transport and the location of foreign logistics firms: the Chinese experience. Transp. Res. A Policy Pract. 41, 597–609 (2007)

    Article  Google Scholar 

  • Hong, J., Chu, Z., Wang, Q.: Transport infrastructure and regional economic growth: evidence from China. Transportation 38(5), 737–752 (2011)

    Article  Google Scholar 

  • Hsiao, C.: Analysis of Panel Data, 2nd edn. Cambridge University Press, Cambridge (2003)

    Book  Google Scholar 

  • Huggins, D.: Panorama of Transport, 1990–2006. EuroStat, Luxembourg (2009)

    Google Scholar 

  • Islam, N.: Growth empirics: a panel data approach. Quart. J. Econ. 110(4), 1127–1170 (1995)

    Article  Google Scholar 

  • Jiang, X., Zhang, L., Xiong, C., Wang, R.: Transportation and regional economic development: analysis of spatial spillovers in China provincial regions. Netw. Spat. Econ. (2015). doi:10.1007/s11067-015-9298-2

  • Mankiw, N.G., Romer, D., Weil, D.N.: A contribution to the empirics of economic growth. Quart. J. Econ. 107(2), 407–437 (1992)

    Article  Google Scholar 

  • Matkowski, Z., Próchniak, M.: Economic convergence between the CEE-8 and the European Union. East. Eur. Econ. 45(1), 59–76 (2007)

    Article  Google Scholar 

  • Nickell, S.: Biases in dynamic models with fixed effects. Econometrica 49(6), 1399–1416 (1981)

    Article  Google Scholar 

  • Patterson, S.: Trade creation and trade diversion and transport costs. Atl. Econ. J. 13(4), 34–38 (1985)

    Article  Google Scholar 

  • Paulley, N., Balcombe, R., Mackett, R., Titheridge, H., Preston, J., Wardman, M., Shires, J., White, P.: The demand for public transport: the effects of fares, quality of service, income and car ownership. Transp. Policy 13, 295–306 (2006)

    Article  Google Scholar 

  • Reza, R., Zahra, K.T.: Evaluation of the income convergence hypothesis in ten new members of the European Union: a panel unit root approach. Panoeconomicus 55(2), 157–166 (2008)

    Article  Google Scholar 

  • Roodman, D.: How to Do xtabond2: An Introduction to Difference and System GMM in Stata. Center for Global Development, Working Paper No: 103 (2008)

  • Roodman, D.: A note on the theme of too many instruments. Oxf. Bull. Econ. Stat. 71(1), 135–158 (2009)

    Article  Google Scholar 

  • Windmeijer, F.: A Finite sample correction for the variance of linear two-step GMM estimators. J. Economet. 126(1), 25–51 (2005)

    Article  Google Scholar 

  • Yu, N., De Jong, M., Storm, S., Mi, J.: Transport infrastructure, spatial clusters and regional economic growth in China. Transp. Rev. 32(1), 3–28 (2012)

    Article  Google Scholar 

  • Zhang, X.: Transport Infrastructure, spatial spillover and economic growth: evidence from China. Front. Econ. China 3(4), 585–597 (2008)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mehmet Aldonat Beyzatlar.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Beyzatlar, M., Yetkiner, H. Convergence in transportation measures across the EU-15. Transportation 44, 927–940 (2017). https://doi.org/10.1007/s11116-016-9686-6

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11116-016-9686-6

Keywords

Navigation