Causal nexus between the transport and logistics sector and trade: The case of Australia

Although a number of studies have already been conducted on the economic impact of the development of the transport and logistics sector and international trade, these are regarded as two separated topics, and little has been done so far to study in depth the relationship between them. This paper seeks to shed light on this issue in the context of Australia. To this end, the vector autocorrelation (VAR) framework is employed to explore the causal relationship between Australia–China trade and the development of the Australian transport and logistics sector. This framework is then extended to allow for the effect of Australia's trade with the US, Japan, the rest of the world and other variables. Based on the analysis results, implications for the transport and logistics sector are discussed.