Investigation of Relationship Between Air Transport and Economic Growth


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Lögün A., Tüzemen A., Karabacak E.

IV. International Caucasus Central Asia Foreign Trade & Logistics Congress, Aydın, Turkey, 7 - 08 September 2018, pp.362-368

  • Publication Type: Conference Paper / Full Text
  • City: Aydın
  • Country: Turkey
  • Page Numbers: pp.362-368
  • Ataturk University Affiliated: Yes

Abstract

Air transport is a means of integrating countries within the world economy. At the same time, it contributes to the tourism sector, and employment in this particular field as well. In this study, the relationship between air transport and economic growth is examined. The number of passengers and the amount of freight carried by countries are used as indicators of air transport; gross domestic product values are used as indicator of economic growth. The first 20 countries with the highest number of passengers in both international and domestic flights are included in the analysis. The US, China, The United Kingdom, Ireland, Germany, India, Japan, Turkey, Indonesia, Brazil, Canada, Russia, Korea, Australia, Spain, France, Thailand, Malaysia, Mexico are included and The UAE has been removed from the list because its data hasn’t been available in the world Bank database. The data is obtained from the World Bank database and this study covers the period of 1993-2016. Natural logarithms of all of the series are taken. Stationary of the series is examined by different panel unit root tests. The panel causality approach is used to determine whether there is any causal relationship among stationary variables. According to the results, economic growth is found to be cause of both the number of passengers and the amount of freight carried. In other words, economic growth has an impact on air transport.