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Dynamic relationship between air transport demand and economic growth in the United States: A new look

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  • Chi, Junwook
  • Baek, Jungho

Abstract

This paper examines the short- and long-run effects of economic growth and market shocks (e.g., 9/11 terrorist attacks, Iraq war, SARS epidemic, and 2008 financial crisis) on air passenger and freight services using an autoregressive distributed lag (ARDL) approach to cointegration. Results show that, in the long-run, both air passenger and freight services tend to increase with economic growth. In the short-run, however, only air passenger service is responsive to economic growth. Finally, only the 9/11 terrorist attacks and the SARS have detrimental effects on air passenger demand both in the short- and long-run, and in the long-run, respectively. However, these market shocks are found to have little impact on air freight demand.

Suggested Citation

  • Chi, Junwook & Baek, Jungho, 2013. "Dynamic relationship between air transport demand and economic growth in the United States: A new look," Transport Policy, Elsevier, vol. 29(C), pages 257-260.
  • Handle: RePEc:eee:trapol:v:29:y:2013:i:c:p:257-260
    DOI: 10.1016/j.tranpol.2013.03.005
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    Cited by:

    1. Samir, Saidi & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The Long-Run Relationship between Transport Energy Consumption and Transport Infrastructure on Economic Growth in MENA Countries," MPRA Paper 85037, University Library of Munich, Germany, revised 06 Mar 2018.
    2. Eunae Jung & Hyungun Sung, 2017. "The Influence of the Middle East Respiratory Syndrome Outbreak on Online and Offline Markets for Retail Sales," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-23, March.
    3. Profillidis, V. & Botzoris, G., 2015. "Air passenger transport and economic activity," Journal of Air Transport Management, Elsevier, vol. 49(C), pages 23-27.
    4. Chi, Junwook, 2014. "A cointegration analysis of bilateral air travel flows: The case of international travel to and from the United States," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 41-47.
    5. 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.
    6. Murakami, Jin & Matsui, Yurika & Kato, Hironori, 2016. "Airport rail links and economic productivity: Evidence from 82 cities with the world’s 100 busiest airports," Transport Policy, Elsevier, vol. 52(C), pages 89-99.

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