The Empirical Analysis On The Relationship Between Transportation And Regional Economic Growth

Transportation industry is an important industry in national economy. On the onehand, development of transportation industry can promote the development ofregional economy；on the other hand, the improvement of economy can also increasethe demand for transportation. So we can say that transportation and regionaleconomy development complement each other and they are interacting. Therelationship between transportation and regional economic growth has become one ofhot topics in the study of economic development. The problem how to make effectiveand reasonable transport mechanism depends on the accurate grasp of the relationshipin China. The research of the relationship between transportation and economicgrowth has important practical value for determining the scale and direction oftransportation investment and realizing the coordinated development of regionaleconomy.Firstly, the article elaborates the mechanism of the regional economy. Therelationship between Regional economic development and transportation, is not just aone-way relationship but a two-way relationship. On the one hand, the promotion ofeconomic growth can support resource for the transportation; on the other hand, thelag of the transport infrastructure may restrict the development of regional economy.Secondly, the article divided29provinces and cities in China into threecategories using multiple indicator panel cluster model, and then carried empiricalresearch on the dynamic relationship between transportation and economic growthbased on panel data between1995and2011, mainly including unit root test of paneldata, panel co-integration test, etc. The empirical results show that the traditionalmethod is not the most rational classification and the two variables are co-integrated,but the level of significance is low. In addition, Granger causality test shows there isonly one-way output Granger causality between the two variables.Finally, in order to better understand the relationship between the transportationand regional economic growth, the article uses the Grey correlation model. It is foundthat the relationship between them is strong. To different regions, the contribution ofdifferent index to the economic growth is different.