The Effects of Economic Growth and Foreign Direct Investment on Air Transportation: Evidence from Turkey

  •  Salih Kalayci    
  •  Gozde Yanginlar    


The major goal of this research paper is to investigate the relationship among Turkish Economic growth, airway transportation and FDI. Several research results consistent with this papers finding and it has been founded that the economic growth plays a crucial role in air transportation by implementing econometrical models including Multiple Linear Regression (MLR), Johansen co-integration test and VAR model. The variables have been put into the Vector Autoregressive Model (VAR) and Johansen co-integration test. According to the test result of Johansen co-integration test there is a long-term relationship between the variables of GDP, FDI and air transportation. According to the both variance decomposition and Impulse Response analysis, the effect of GDP is found to increase air transportation more than the FDI. Finally, the contribution of Turkish economy to civil aviation seems significant which is consistent with this paper’s research results.

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