TY - JOUR
T1 - Regional aviation and economic growth
T2 - Cointegration and causality analysis in Australia
AU - Baker, Douglas
AU - Merkert, Rico
AU - Kamruzzaman, Md
PY - 2015
Y1 - 2015
N2 - Air transport is a critical link to regional, rural and remote communities in Australia. Air services provide important economic and social benefits but very little research has been done on assessing the value of regional aviation. This research provides the first empirical evidence that there is short and long run causality between regional aviation and economic growth. The authors analysed 88 regional airports in Australia over a period of 1985-86 to 2010-11 to determine the catalytic impacts of regional air transport on regional economic growth. The analysis was conducted using annual data related to total airport passenger movements - for the level of airport activity, and real aggregate taxable income - to represent economic growth. A significant bi-directional relationship was established: airports have an impact on regional economic growth and the economy directly impacts regional air transport. The economic significance of regional air transport confirms the importance of the airport as infrastructure for regional councils and the need for them to maintain and develop local airports. Funding should be targeted at airports directly to support regional development.
AB - Air transport is a critical link to regional, rural and remote communities in Australia. Air services provide important economic and social benefits but very little research has been done on assessing the value of regional aviation. This research provides the first empirical evidence that there is short and long run causality between regional aviation and economic growth. The authors analysed 88 regional airports in Australia over a period of 1985-86 to 2010-11 to determine the catalytic impacts of regional air transport on regional economic growth. The analysis was conducted using annual data related to total airport passenger movements - for the level of airport activity, and real aggregate taxable income - to represent economic growth. A significant bi-directional relationship was established: airports have an impact on regional economic growth and the economy directly impacts regional air transport. The economic significance of regional air transport confirms the importance of the airport as infrastructure for regional councils and the need for them to maintain and develop local airports. Funding should be targeted at airports directly to support regional development.
KW - Australia
KW - Causality analysis
KW - Economic growth
KW - Regional air transport
UR - http://www.scopus.com/inward/record.url?scp=84922986459&partnerID=8YFLogxK
U2 - 10.1016/j.jtrangeo.2015.02.001
DO - 10.1016/j.jtrangeo.2015.02.001
M3 - Article
AN - SCOPUS:84922986459
VL - 43
SP - 140
EP - 150
JO - Journal of Transport Geography
JF - Journal of Transport Geography
SN - 0966-6923
ER -
