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The Effects of Economic Growth and Foreign Direct Investment on Air Transportation: Evidence from Turkey

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  • Salih Kalayci
  • Gozde Yanginlar

Abstract

The major goal of this research paper is to investigate the relationship among Turkish Economic growth, airway transportation and FDI. Several research results consistent with this papers finding and it has been founded that the economic growth plays a crucial role in air transportation by implementing econometrical models including Multiple Linear Regression (MLR), Johansen co-integration test and VAR model. The variables have been put into the Vector Autoregressive Model (VAR) and Johansen co-integration test. According to the test result of Johansen co-integration test there is a long-term relationship between the variables of GDP, FDI and air transportation. According to the both variance decomposition and Impulse Response analysis, the effect of GDP is found to increase air transportation more than the FDI. Finally, the contribution of Turkish economy to civil aviation seems significant which is consistent with this paper’s research results.

Suggested Citation

  • Salih Kalayci & Gozde Yanginlar, 2016. "The Effects of Economic Growth and Foreign Direct Investment on Air Transportation: Evidence from Turkey," International Business Research, Canadian Center of Science and Education, vol. 9(3), pages 154-162, March.
    • Handle: RePEc:ibn:ibrjnl:v:9:y:2016:i:3:p:154-162
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    References listed on IDEAS

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    5. Kasarda, John D. & Green, Jonathan D., 2005. "Air cargo as an economic development engine: A note on opportunities and constraints," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 459-462.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Seda Bahad r, 2022. "The Interactions among Air Freight, GDP, Energy Usage and Ecological Footprint: An Empirical Investigation from Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 332-339, November.
    2. YAĞAR EGİLMEZ, Funda, 2020. "The Long-Run Relationship Between Airline Transport, Export Volume And Economic Growth: Evidence From Usa," Academic Review of Humanities and Social Sciences, Bursa Teknik Üniversitesi, vol. 3(2), pages 466-482.
    3. Umut ERDEM & Dimitrios TSIOTAS & K. Mert CUBUKCU, 2019. "Population Dynamics In Network Topology: The Case Of Air Transport Network In Turkey," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 11(2), pages 5-20, June.
    4. Seda Bahad r, 2022. "Analyzing the Environmental Kuznets Curve Hypothesis in terms of Airplane Transport: Empirical Examination for Baltic States," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 252-259, September.

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    More about this item

    Keywords

    multivariable linear regression (MLR); ADF unit root test; Johansen co-integration test; vector autoregressive model; impulse response; variance decomposition; economic growth; FDI; air transportation;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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