Application of Gordon’s growth model for the transport sector of Lithuania

Abstract

Even the number of studies has already been carried out on the development of transport sector and the equity value of transport companies, they are considered as two separate topics, and nothing similar has been done so far. This paper seeks to combine both and reviews the situation in Lithuanian context. The application of Gordon’s growth model is applied for the sector analysis for the first time, especially for the estimation of the equity value of the transport sector. By the end, the connection between trade flows and the development of the transport sector is presented. Based on the results of the analysis, the insights for the transport sector are provided. The development of Lithuania transport sector is also compared with the tendencies on EU-28 level.