THE LONG-RUN RELATIONSHIP BETWEEN AIRLINE TRANSPORT, EXPORT VOLUME AND ECONOMIC GROWTH: EVIDENCE FROM USA

The major goal of this manuscript is to determine the overtime changes in series and to examine the long-run stable linkage among air transportation, export volume and economic growth (GPD) for USA from 1980 to 2017 as annual data by using Johansen co-integration test, VAR analysis, variance de-composition and impulse response. Stationary tests of entire variable indicate that air transportation, export volume and economic growth are stationary at the first differences I(1) which are determined through ADF unit root test. According to empirical results of this manuscript, Johansen co-integration test determine the long-term stable relationship among air transportation, export volume and economic growth (GPD). On the other hand, according to the findings of multivariate regression analysis of three variables at Table 5, the impact of export capacity have considerably important on economic growth which is coincide with variance de-composition analysis at Table 4. The findings of this study suggest that appropriate policy should be applied to increase trade volume, air transportation including civil aviation and air freighter would boost considerably the economic growth (GDP) of USA. The government should exercise influence over imports of goods and services in order to provide the maximum benefit from trade in terms of increasing the export volume. In this context, the government should apply import restrictions through legislative regulations.