The Relationship Between Air Transport and Economic Growth: Evidence from G7 Countries and Türkiye

The aim of this study is to examine the relationship between air freight and passenger transport and economic growth for the G7 countries and Türkiye. The study was conducted using annual data on economic growth rates, air freight, and the number of passengers transported for the period 1960-2021. The empirical analysis employed the Panel Fourier Toda-Yamamoto causality test. In Italy, a causal relationship was found to run from the economic growth variable to the amount of air freight, while in Canada, there exists a causal relationship running from the amount of air freight to economic growth. Furthermore, in Italy, France, the United Kingdom, the United States, and Japan, there exists a causal relationship running from the economic growth variable to the number of air passengers. In all countries except Italy, there exists a causal relationship running from the number of air passengers to economic growth. The findings from the analysis indicate a bidirectional causality between air passenger transport and economic growth in many of the countries examined. The findings suggest that countries, including Türkiye, seeking to increase their growth rates should prioritize the development of air transportation.