The Correlation Effect between Transportation and Economy in Beijing-Tianjin-Heibei area: An analysis Based on PVAR Model

Based on the annual panel data of Beijing-Tianjin-Hebei area from 1985 to 2018, this paper established a Panel Vector Autoregressive Model, variance decomposition, and impulse response function analyzing the linkage effect between the transportation and regional economy. The conclusions are as follows: Beijing-Tianjin-Hebei transportation integration and regional economic integration development are mutually reinforcing, but the results of variance decomposition show that they have different pulling forces, and the latter is more effectively than the former. The impulse response analysis show that the development of railways has made greater contributions to regional economic development than highways. In summary, there is a close relationship between the transportation integration and regional economic integration in the Beijing- Tianjin-Hebei region. They promote and coordinate with each other, but how to strengthen the relationship between them to make the area develop faster, more further research is needed.