An empirical analysis of Australian freight rail demand

Albert Wijeweera; Hong To; Michael Charles

doi:10.1016/j.eap.2014.01.001

An empirical analysis of Australian freight rail demand

Albert Wijeweera, Hong To, Michael Charles

School of Business and Tourism

Research output: Contribution to journal › Article › peer-review

11 Scopus citations

Abstract

The impact of an unannounced shock in freight rate, international trade and business cycle on the non-bulk freight rail demand in Australia is examined by using a VAR model and an annual data set encompassing four decades (1970-2011). Results based on VAR, impulse response functions and variance decompositions suggest that freight rate and the volatility of the Australian dollar are the most dominant determinants. The availability of an alternative mode, such as road, could be attributed to this considerable response to the freight rate. Macroeconomic conditions favourable to bulk freight demand, such as a depreciated Australian dollar, have a similar impact on non-bulk rail freight.

Original language	British English
Pages (from-to)	21-29
Number of pages	9
Journal	Economic Analysis and Policy
Volume	44
Issue number	1
DOIs	https://doi.org/10.1016/j.eap.2014.01.001
State	Published - Mar 2014

Keywords

Australia
Freight rail demand
VAR analysis

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10.1016/j.eap.2014.01.001

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An empirical analysis of Australian freight rail demand

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Keywords

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