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Dynamic relationship between air transport and economic growth in Italy: a time series analysis


  • Juan Gabriel Brida
  • Daniel Bukstein
  • Sandra Zapata-Aguirre


This paper studies the causal relationship between air transport demand and economic growth in Italy for the period 1971-2012. Johansen cointegration analysis shows the existence of one cointegrated vector between real GDP and air transport (represented by aircrafts movements) where the corresponding elasticities are positive. The Granger Causality test shows that causality goes unidirectionally from air-transport to GDP. The results imply that Italy can improve its economic growth performance by strategically harnessing the contribution of the air transport industry and improving their governance performance. Although air transport industry has grown significantly in Italy, there are no empirical analyses, to our knowledge, regarding European region as an entire case of study, neither the particular case of Italy. Therefore, the value of this work is that it deals with the dynamics between the air transport sector and the Italian economy.

Suggested Citation

  • Juan Gabriel Brida & Daniel Bukstein & Sandra Zapata-Aguirre, 2016. "Dynamic relationship between air transport and economic growth in Italy: a time series analysis," International Journal of Aviation Management, Inderscience Enterprises Ltd, vol. 3(1), pages 52-67.
  • Handle: RePEc:ids:ijavim:v:3:y:2016:i:1:p:52-67

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    Cited by:

    1. Elena Cigu & Daniela Tatiana Agheorghiesei & Anca Florentina Gavriluță (Vatamanu) & Elena Toader, 2018. "Transport Infrastructure Development, Public Performance and Long-Run Economic Growth: A Case Study for the Eu-28 Countries," Sustainability, MDPI, Open Access Journal, vol. 11(1), pages 1-22, December.
    2. 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.
    3. Iyer, K. Chandrashekhar & Thomas, Nivea, 2021. "An econometric analysis of domestic air traffic demand in regional airports: Evidence from India," Journal of Air Transport Management, Elsevier, vol. 93(C).
    4. Kiracı Kasım & Akan Ercan, 2020. "Empirical analysis of the relationship between trade wars and sea—air transportation," Economics and Business Review, Sciendo, vol. 6(3), pages 23-44, August.
    5. Saidi, Samir & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The long-run relationships between transport energy consumption, transport infrastructure, and economic growth in MENA countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 78-95.
    6. YAĞAR EGİLMEZ, Funda, 2020. "The Long-Run Relationship Between Airline Transport, Export Volume And Economic Growth: Evidence From Usa," Academic Review of Humanities and Social Sciences, Bursa Teknik Üniversitesi, vol. 3(2), pages 466-482.
    7. Yetkiner, Hakan & Beyzatlar, Mehmet Aldonat, 2020. "The Granger-causality between wealth and transportation: A panel data approach," Transport Policy, Elsevier, vol. 97(C), pages 19-25.
    8. Ştefan Cristian Gherghina & Mihaela Onofrei & Georgeta Vintilă & Daniel Ştefan Armeanu, 2018. "Empirical Evidence from EU-28 Countries on Resilient Transport Infrastructure Systems and Sustainable Economic Growth," Sustainability, MDPI, Open Access Journal, vol. 10(8), pages 1-34, August.
    9. Tolcha, Tassew Dufera & Bråthen, Svein & Holmgren, Johan, 2020. "Air transport demand and economic development in sub-Saharan Africa: Direction of causality," Journal of Transport Geography, Elsevier, vol. 86(C).


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