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

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.

The EU Logistics Sector

“…Around 90% of world trade is performed via oceans and seas (Allianz Global Corporate and Specialty, 2022), which is the best indicator of what consequences the increase of the freight rates in maritime container shipping can have on many economies. Maritime industry has always played the key role in driving prosperity (Vilke et al, 2021).…”

Correlation Analysis Method of Customisation and Semi-Personalisation in Mobility as a Service

“…widely applied in various science and technology-related fields; especially, the regression model is preferred [22,23]. A literature overview and evaluation has been presented to summarise the correlation between the analytical measurement and the operability in real world regarding winter qualities of diesel.…”

“…Figure 3 -Structure of the scoring table Transit, 20 TripGo, 23 Whim App). The comparison among values or "ribbon width" is not needed, as each r j value only reflects the correlation between X j and Y j of that corresponding MAj. For example, the r 23 of Whim is -0.411, which indicates that the X 23 and Y 23 have negative correlation regarding each X Ai,23 and Y Ai, 23 . The tendency is: customisation setting obtains higher scores, semi-personalisation obtains lower ones, and vice versa.…”

Volatile Freight Rates in Maritime Container Industry in Times of Crises

“…Transport can have considerable impact on international trade, and the transportation cost is the variable that determines whether or not trading will happen and to what extent. Transportation costs should be considered from a broader perspective, i.e., they are "the aggregate cost of all freight, insurance and other charges" [5,6]. Limão and Venables in [7] give an approximation of the increase in cost to trade volume ratio, a 10% increase in transport costs reduces trade volume by 20%.…”