Investigation of the influences of ‘transport complex economy’ and political risk on freight transport growth

Abstract

Rapid growth in world trade has given rise to internationalisation. Freight transport is dependent on world trade as carriage of cargoes will not take place unless there is a need for cargoes to be transported, and demand for freight transport depends on traders’ demand to transport their goods. Identifying the factors that affect the growth of freight transport is an important research topic. This study attempts to empirically examine the determinants of freight transport growth. We construct and empirically validate a theoretical model that links political risk, transport complex economy (TCE), and freight transport growth. We find that freight transport growth is enhanced by the development of a TCE, while political risk weakens freight transport growth.