Air transportation and inclusive growth in Tunisia: Evidence from Autoregressive Distributed Lag and wavelet coherence approach

The inclusive growth paradigm has gained significant attention, with several organizations emphasizing its importance. However, while the concept of inclusive growth remains a topic of ongoing debate, the specific role of air transportation in promoting inclusive growth remains underexplored, particularly in its capacity to enhance accessibility, promote regional development, and integrate marginalized areas into national and global economies. This study investigates the relationship between air transportation and inclusive growth in Tunisia using annual data from 1965 to 2021. This study utilized the Autoregressive Distributed Lag (ARDL) model to analyze both short- and long-term relationships between the variables. At the same time, the wavelet coherence approach is used to examine how these relationships evolve over time and across different frequencies. The results from the ARDL model indicate that air transport, foreign direct investment, and social globalization are key determinants of inclusive growth in Tunisia. Moreover, the wavelet coherence analysis reveals that these factors positively influence inclusive growth, while the wavelet causality identifies a bidirectional causality between inclusive growth and the regressors, with variations in the timing and frequency of causality. This study contributes to the growing literature on transport infrastructure and inclusive growth by providing robust methodological insights and practical policy recommendations. These findings show the critical role of air transportation as a catalyst for sustainable and inclusive growth, emphasizing the importance of targeted investments and strategic policy interventions in Tunisia.