7 Chapter 2 Table 1: Regression Results - Total Tkm

|**Area**- **K1%E**<br>GDP=ICP**Icternl**|$**(million**|**s)**|Dependent<br>**(Fetal**Road|Variable =<br>,**RaIl, Wa**|TIM**(mions)**<br>**w Tonne.Km**|<br>**)**|**Dependent** <br>**(Nillons)**|Variable<br>|**LNJ(I**||
|---|---|---|---|---|---|---|---|---|---|---|
|**ISLmple**<br>f-<br>-|**Ind.**<br>Var.(z)<br>s|**Sor**<br>Obs.|x<br>cOst.<br>-|T<br>vue<br>-|**ComnI**<br>-|AdJ.<br>**R'**<br>-7T|**X**<br>_Cod._<br>|T<br>**Value**<br>**-**<br>-|**Cooan**<br>-<br>-|Adj.<br>**I3**<br>|
|<br>...<br>A:**Totail****_Sanpl_**|<br>**Am**|33|**_0.11691_**|..<br>**63C8**|.<br>31,87.8|_..<br>.<br>**0.55**|_<br>.<br>0.76461|...<br>3.495|,<br>**0**|_<br>**0.26**|
|A:**_Toc Sampk_**|**ODP**|33|0.318S1|8.299|**9.468.2**|0.68|**1.2948**|**11.884**|**(13.7)**|0.81|
|A:**Totl****_Sau%le_**|**Aiea**<br>GDP|33|0.07592<br>0.23875|7.178<br>9.154|(5.444.1)|0.88|0.13183<br>**1.22C95**|**.34**<br>9.6B6|(14.1)|**0.81**|
|B:**Dnvelpqd**|_A_|17|0.12699|3.909|**49,25**|0.47|0.66942|3.017|**2.6**|0.34|
|**B:**D1vloped|GDP|17|0.27636|5.308|16.212.8|0.63|1.18185|10.632|(11.7)|**0on**|
|B:**DOoIqpd**|**Amos**<br>GDP|17|0.09964<br>0.23463|9.440<br>**11.534**|**(I2,773.)**|0.9f|**0.22451**<br>**I.o5n**|**2.314**<br>9.425|(12.0)|0.90|
|C:**DNl'd+Dew11ng**|**Am**|**28**|0.11949|**6.169**|25,090.0|**0.58**|0.1218|**3.517**|**0.2**|0.30|
|**C:**Dvwerd+DvIo'ag|GDP|**28**|**0.32631**|8.194|1,037.7|0.71|**1.33525**|**14.563**|(147)|**0.89**|
|**C:DOPd+l)veri'+ng**|**Ana**|**28**|**0.07940**|9.632|(17,410.0)|0.94|**0.1869?**|1,816|_(153)_|0.90|
||GDP||0.24715|12.094|||**1.24369**|12.271|||
|**TD Dvwr1d+SoUali**|**Am**|22|0.12624|4.413|51,058.8|0.47|**0.6584**|**3363**|2.9|0.33|
|D: Dael'd+SooiIu|GDP|22|**0.26580**|5.745|**26632.0**|0.69|**10758**|**_886_**|(9.3)|**0.75**|
|**D:**Dewtd+SodI&sv|**Ama**|22|0.09528|**6.536**|**4,33.8**|**0.87**|**0.2300**|1.750|**(9.6)**|**0.78**|
||GDP||0.218|7.993|||0.93721|**6.419**|||
|'AU**vmab&Mw**<br>**in** --<br>ml**la**|**g.**|eNot|*-if**-t**<br>_5%_**Iw.**||||||||

# Road Freight

26. Of the two independent variables, it is GDP that determines variations in ton-lilometers of road transport (Table 2). While the simple coefficient on area has the right sign, it is generally not significant and only serves to improve the explanation of ton-kilometers marginally, if at all. The coefficient on GDP, however, is highly significant and accordingly displays useful characteristics. First, it is virtually the same whether area is included in the regression or not: it gives a high level of explanation when used on its own. Second, it has very similar values in the smaller ("developed" countries) and the larger ("developed + developing" countries) samples. For either group of countries it would be legitimate to say that another million (international) Dollars added to (GDP adds another 170,000 ton-kilometers to road freight transport, irrespective of the country's income per capita, and practicaUy irrespective of its area.

27. These identical (or almost identical) absolute additions to road freight service are, however, associated with different long-run _elasticities._ The difference is significant. Poorer countries have fewer road ton-kllometers per dollar of GDP than the richer ones. For the sample of 17 "developed" countries, the partial elasticity of ton-ldlometers by road with respect to GDP is about unity (1.02). For the larger sample, including the poorer countries, it is well