International Journal of Multidisciplinary Research and Growth Evaluation www.allmultidisciplinaryjournal.com 410 International Journal of Multidisciplinary Research and Growth Evaluation ISSN: 2582-7138 Received: 02-01-2021; Accepted: 04-02-2021 www.allmultidisciplinaryjournal.com Volume 2; Issue 1; January-February; 2021; Page No. 410-415 The effect of road transport, rail transport, air transport on the formation of gross domestic product Sarah Yosephine Sinaga 1 , Iskandar Muda 2 1, 2 Universitas Sumatera Utara, Medan, Indonesia Corresponding Author: Sarah Yosephine Sinaga Abstract This research examines and proves the effect of Road Transport, Rail Transport, and Air Transport on the formation of Europe's Gross Domestic Product in 2013-2016. The problems to be discussed are regarding the variables that affect the formation of European Gross Domestic Product in 2013-2016.. The aim of this research is to prove the influence of the effect of Road Transport, Rail Transport, and Air Transport to the formation of Europe’s Gross Domestic Product. To research and prove the hypothesis an empirical test was administered within the sort of Q Square prediction with Smart PLS version 3.3.3 on the magnitude of the influence of the activity sub-sector. The method utilized in data collection may be a combination of secondary data derived from European Statistical Recovery Dashboard data. The method wont to analyze data is that the statistic data method. The results show that not all variables affect Gross Domestic Product. It can be proved from the statistical t value of 1,792 < from the t table value of 2,028 which means that Road Transport (X1) has no positive effect and significant to the formation of total Gross Domestic Product. The Rail Transport (X2) is an independent variable that features a positive and significant effect on the formation of total Gross Domestic Product. It can be proved from the statistical t value of 3,374 > from the t table value of 2,028. The air transport (X3) is an independent variable that features a positive and significant effect on the formation of total Gross Domestic Product. It can be proved from the statistical t value of 2,608 > from the t table value of 2,028. Keywords: Road Transport, Rail Transport, Air Transport, Gross Domestic Product 1. Introduction Economic growth is extremely important and its speed must be much greater than the increase rate in order that the rise in people’s per capita income are often achieved. One measure of a country's economic process are often seen from their value, while the measure of value that's often used is Gross Domestic Product (GDP), which is that the value of all goods and services produced by a rustic within a particular period of your time. Gross Domestic Product is everything that's produced by society and business, including workers' salaries. Gross Domestic Product data is additionally a way wont to determine which economic sectors are experiencing growth or decline. The GDP calculation method that uses income parameters is obtained by adding up the income of all employees, employees, company profits, copyright income, income and net interest income, this is often called the GDP income method calculation. While other methods are often measured by the expenditure approach calculated by adding up total consumption, investment, state expenditure and net exports. Countries calculate GDP in their own currencies so as to match across countries these estimates need to be converted into a standard currency. Often the conversion is formed using current exchange rates but these can provides a misleading comparison of truth volumes of ultimate goods and services in GDP. A far better approach is to use purchasing power parities (PPPs). PPPs are currency converters that control for differences within the price levels of products between countries then allow a world comparison of the volumes of GDP and of the dimensions of economies. Road transport means transportation of products and personnel from one place to the opposite on roads. Road may be a route between two destinations, which has been either paved or worked on to enable transportation by way of motorised and non- motorised carriages. Rail transport is additionally referred to as train transport. It's a way of transport, on vehicles which run on tracks (rails or railroads). It's one among the foremost important, commonly used and really cost effective modes of commuting and goods carriage over long, also as, short distances. Air transport is one among the fastest modes of conveyance which connects international boundaries.