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AIR-TRANSPORT AND MACROECONOMIC PERFORMANCE IN ASIAN COUNTRIES: An Analysis

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  • Bilal MEHMOOD
  • Muhammad ALEEM
  • Nabeel SHAHZAD

Abstract

Factors of growth have always been the attention of development economists. This research work investigates the role of air-transport in macroeconomic performance of Asian countries from 1970 to 2014. For this, we resort to econometric techniques, such as Pesaran Cross-Sectional Dependence Test, Cross-Sectional Augmented IPS, Mean Group (MG), Common Correlated Effect Mean Group (CCEMG), Augmented Mean Group (AMG), and Panel Granger Causality. Empirical results confirm the hypothesis that air- transport has a significant role in economic growth of sample countries. Moreover, a feedback effect also exists from macroeconomic performance and air-transport. It is recommended that airtransport sector should be given formal incentive so as to augment its macroeconomic contribution to economic growth.

Suggested Citation

  • Bilal MEHMOOD & Muhammad ALEEM & Nabeel SHAHZAD, 2015. "AIR-TRANSPORT AND MACROECONOMIC PERFORMANCE IN ASIAN COUNTRIES: An Analysis," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 25(2), pages 179-192.
    • Handle: RePEc:pje:journl:articleiii
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    1. Ali, Rafaqet & Bakhsh, Khuda & Yasin, Muhammad Asim, 2023. "Causal nexus between air transportation and economic growth in BRICS countries," Journal of Air Transport Management, Elsevier, vol. 107(C).

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