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Freight Transportation
Activity, Business Cycles
and Trend Growth
Fredrik N G Andersson and Thomas Elger
Working Paper No. 2007:15
Department of Economics
Lund University
Freight Transportation Activity, Business Cycles and Trend Growth♣
Fredrik N G Andersson
Department of Economics, Lund University
*
Thomas Elger
Department of Economics, Lund University
Abstract
This paper studies empirical linkages between cycles and trends in freight trans-
portation 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 eco-
nomic 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 on road from the mid-nineties and onwards.
JEL Codes: E29, C19, L92
Keywords: freight transportation, business cycles, trend growth, decoupling, efficiency
♣ Thomas Elger gratefully acknowledges funding from the Swedish Governmental Agency
for Innovation Systems (VINNOVA); Project number 29035-1. Fredrik Andersson gratefully
acknowledges funding from the Jan Wallander and Tom Hedelius foundation; Project number
P2005-0117:1. The authors are thankful for comments by seminar participants at the Swedish
Institute for Transport and Communications Analysis and Statistics Sweden (in particular Lars
Werke). We also
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