The interaction of transportation sector and economic growth in the framework of a vector error correction model with exogenous variables

The transportation sector includes activities that are widely effective in the processes of production distribution and consumption of goods and services. so, it plays a fundamental role in the economic growth of countries. However, investment in transportation infrastructure despite the positive effects, may not have maximum effects on growth in developing countries due to mismanagement and lack of proper strategy and plan in infrastructure development. As a result, considering the nature of investment in the transportation sectorm this sector and the growth of the national GDP from different dimensions and angles becomes more important. The current research has investigated this issue based on a "vector error correction model" and its estimation in the period from 1373 to 1399. the relationships of the variables used in this model can be specified in the form of three correlation relationships. These three relationships can be examined under the three relationships explaining real GDP, real exchange rate and real investment in the transportation sector, which respectively describe the behavior of the real sector of the economy, the behavior of the currency market and the behavior of investment in the transportation sector. According to the obtained results, the variable of investment in the transportation sector has an effect on the production variable in the long term, and the extent of this influence is such that each one percent increase in the real investment in the transportation sector can be 0.09 percent in growth Iran's economy will be effective.