Air transport demand and economic growth in Brazil: A time series analysis
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.
Volume (Year): 46 (2010)
Issue (Month): 2 (March)
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