Analysis of the relationship between traffic accidents and economic growth by smooth transition panel regression method

Linear regression models are inadequate to explain the complex relationships between a number of events or situations in many fields, especially in the field of economics. On the other hand nonlinear regression models, are more inclusive and reliable in explaining these complex relationships since they also include linear regression models. In this context, the role of GDP per capita in the relationship between traffic accidents and economic growth in OECD countries between 1996-2017 using the smooth transtion panel regression models which is one of the nonlinear panel regression models, examined and an application was made about this subject. According to the results obtained; The threshold parameter for the GDP level was calculated as 10,919 (55.215,55 $). Therefore, while traffic accidents increase below this threshold level, traffic accidents decrease if they are above the threshold level.