Scandinavian Working Papers in Economics

Working Papers,
Lund University, Department of Economics

No 2007:15: Freight Transportation Activity, Business Cycles and Trend Growth

Fredrik N G Andersson () and Thomas Elger
Additional contact information
Fredrik N G Andersson: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden
Thomas Elger: Department of Economics, Lund University, Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund, Sweden

Abstract: This paper studies empirical linkages between cycles and trends in freight transportation activity and real economic activity in Sweden. We find that cycles in freight transportation are highly contemporaneously correlated with cycles in economic variables over both the short run and the medium run. The pattern of long run growth in freight transportation activity coincides with growth in economic variables during long periods, but there are also periods with substantial differences. Furthermore, we observe and explain a large decline in trend growth in tonne-kilometres by road from the mid-nineties and onwards.

Keywords: freight transportation; business cycles; trend growth; decoupling; efficiency

JEL-codes: C19; E29; L92

30 pages, September 13, 2007

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