Effects of Volatility of Energy Price on Land Transportation Sector's Value Added and Inflation

Transportation sector is an important sector of economic which has many effects on other sectors of economic. Operation of this sector is dependent to energy and energy price changes are affected on value added and inflation of this sector and have important effect on main variables of economic. In this paper, effects of volatility of energy price are surveyed on value added and inflation of land transportation sector and its intensity on these two variables with VECM, Impulse response. Results reveal indirect effect of volatility of energy price on value added and direct effect on inflation in land transportation sector. Second hypothesis as more effects of volatility of energy price on inflation respect to value added in this sector, is accepted.