Yıl 2018, Cilt 8, Sayı 1, Sayfalar 1 - 4 2018-12-30

CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX

Mehmet Aldonat Beyzatlar [1]

1 15

Purpose - The purpose of this study is to bridge stock index, consumer price index, and services index in transportation sector. This paper

provides an empirical evaluation of causal relations between transportation measures and their financial side as a pioneering study.

Methodology - This study uses monthly data for our research exercise including United States for twenty-one years, from January 2000

until June 2018. The variable of interest include Dow Jones Transportation Stock Index (DJT), Consumer Price Index: Transportation (CPIT),

and Transportation Services Index (TSI).

Findings- The results indicate that the causality relations are bi-directional between all variables (i) DJT and TSI, (ii) DJT and CPIT, and (iii)

TSI and CPIT.

Conclusion- In this paper, it is argued that the determination of a causal link between transportation measures and their financial side, and

the nature of Granger-causality may have an important policy implication for policy makers, portfolio investors, and actors in

transportation sector. The strong tendency to show bi-directional Granger-causality running between variables indicates the potentially

important role of transportation in stimulating finance and vice versa.

Transportation Services Index, Consumer Price Index, Dow Jones Transportation Index, Causality, United States, Grangercausality
  • Baker, D., Merkert, R., and Kamruzzaman, M. (2015). Regional aviation and economic growth: cointegration and causality analysis in Australia. Journal of Transport Geography, 43, 140-150. DOI: 10.1016/j.jtrangeo.2015.02.001
  • Beyzatlar, M. A., Karacal, M., and Yetkiner, H. (2014) Granger-causality between transportation and GDP: A panel data approach. Transportation Research Part A: Policy and Practice, 63, 43-55. DOI: 10.1016/j.tra.2014.03.001
  • Beyzatlar, M. A., and Yetkiner, H. (2017). Convergence in transportation measures across the EU-15. Transportation, 44(5), 927-940. DOI: 10.1007/s11116-016-9686-6
  • Chang, Y. H. and Chang, Y. W. (2009). Air cargo expansion and economic growth: Finding the empirical link. Journal of Air Transport Management, 15(5), 264-265. DOI: 10.1016/j.jairtraman.2008.09.016
  • Fernandes, E. and Pacheco, R. R. (2010). The Causal Relationship between GDP and Domestic Air Passenger Traffic in Brazil. Transportation Planning and Technology, 33(7), 569-581. DOI: 10.1080/03081060.2010.512217
  • Granger, C. W. (1969). Investigating Causal Relations by Econometric Models and Cross-Spectral Methods. Econometrica, 37(3), 424-438.
  • Granger, C. W. (1988). Some recent development in a concept of causality. Journal of econometrics, 39(1-2), 199-211.
  • Hakim, M. M., and Merkert, R. (2016) The causal relationship between air transport and economic growth: Empirical evidence from South Asia. Journal of Transport Geography, 56, 120-127. DOI: 10.1016/j.jtrangeo.2016.09.006
  • Hu, Y., Xiao, J., Deng, Y., Xiao, Y., and Wang, S. (2015) Domestic air passenger traffic and economic growth in China: Evidence from heterogeneous panel models. Journal of Air Transport Management, 42, 95-100. DOI: 10.1016/j.jairtraman.2014.09.003
  • Mukkala, K., and Tervo, H. (2013). Air transportation and regional growth: which way does the causality run? Environment and Planning A, 45(6), 1508-1520. DOI: 10.1068/a45298
  • Pradhan, R. P., and Bagchi, T. P. (2013) Effect of transportation infrastructure on economic growth in India: the VECM approach. Research in Transportation Economics, 38(1), 139-148. DOI: 10.1016/j.retrec.2012.05.008
  • Toda, H. Y., and Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of econometrics, 66(1-2), 225-250.
  • Yao, V. W. (2005). The causal linkages between freight and economic fluctuations. International Journal of Transport Economics/Rivista internazionale di economia dei trasporti, 143-159.
Birincil Dil en
Konular Beşeri Bilimler, Ortak Disiplinler
Dergi Bölümü Makaleler
Yazarlar

Orcid: 0000-0002-8434-8447
Yazar: Mehmet Aldonat Beyzatlar (Sorumlu Yazar)

Bibtex @araştırma makalesi { pap506079, journal = {PressAcademia Procedia}, issn = {}, eissn = {2459-0762}, address = {PressAcademia}, year = {2018}, volume = {8}, pages = {1 - 4}, doi = {10.17261/Pressacademia.2018.969}, title = {CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX}, key = {cite}, author = {Beyzatlar, Mehmet Aldonat} }
APA Beyzatlar, M . (2018). CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX. PressAcademia Procedia, 8 (1), 1-4. DOI: 10.17261/Pressacademia.2018.969
MLA Beyzatlar, M . "CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX". PressAcademia Procedia 8 (2018): 1-4 <http://dergipark.gov.tr/pap/issue/42051/506079>
Chicago Beyzatlar, M . "CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX". PressAcademia Procedia 8 (2018): 1-4
RIS TY - JOUR T1 - CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX AU - Mehmet Aldonat Beyzatlar Y1 - 2018 PY - 2018 N1 - doi: 10.17261/Pressacademia.2018.969 DO - 10.17261/Pressacademia.2018.969 T2 - PressAcademia Procedia JF - Journal JO - JOR SP - 1 EP - 4 VL - 8 IS - 1 SN - -2459-0762 M3 - doi: 10.17261/Pressacademia.2018.969 UR - http://dx.doi.org/10.17261/Pressacademia.2018.969 Y2 - 2019 ER -
EndNote %0 PressAcademia Procedia CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX %A Mehmet Aldonat Beyzatlar %T CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX %D 2018 %J PressAcademia Procedia %P -2459-0762 %V 8 %N 1 %R doi: 10.17261/Pressacademia.2018.969 %U 10.17261/Pressacademia.2018.969
ISNAD Beyzatlar, Mehmet Aldonat . "CAUSALITY BETWEEN DOW JONES TRANSPORTATION INDEX, CPI TRANSPORTATION INDEX AND TRANSPORTATION SERVICES INDEX". PressAcademia Procedia 8 / 1 (Aralık 2018): 1-4. http://dx.doi.org/10.17261/Pressacademia.2018.969