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Air transport demand and economic growth in Brazil: A time series analysis

  • Marazzo, Marcial
  • Scherre, Rafael
  • Fernandes, Elton
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    We investigate the relationship between air transport demand (passenger-kilometer: PAX) and economic growth (GDP) between 1966 and 2006 in Brazil. Special attention is paid to stationary features and the existence of a long-run equilibrium between variables to work in a vector autoregressive environment. Our findings suggest that GDP and PAX are co-integrated. Impulse-response analysis indicates a strong positive reaction of PAX due to a positive change in GDP. However, GDP reacts to a change in PAX in a slower and moderated way. We interpret these findings as an empirical evidence of air transport multiplier effects in the economy.

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    Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

    Volume (Year): 46 (2010)
    Issue (Month): 2 (March)
    Pages: 261-269

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    Handle: RePEc:eee:transe:v:46:y:2010:i:2:p:261-269
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