The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations
Abstract
This study examines how trade openness, institutional quality, digital innovation capability, and economic growth are associated with aviation activities across a balanced panel of 72 countries from 2005 to 2023. Air passenger transport carried (ATPC) and air freight transport carried (ATFR) are analyzed separately to capture possible structural differences.
The empirical procedure includes descriptive statistics, diagnostic tests, Fisher-type ADF unit root tests, Westerlund cointegration tests, and two-way fixed-effects regressions with Driscoll-Kraay standard errors. Interaction and threshold models are further estimated to test whether the effect of trade openness varies across levels of digital innovation capability, and Dumitrescu-Hurlin causality tests are used to identify directional linkages.
The results show that government effectiveness is a stable and positive determinant of both ATPC and ATFR. Aviation activities also respond differently to regulatory quality and the components of digital innovation capability. Passenger aviation is more closely associated with mobile connectivity, whereas freight aviation is more sensitive to institutional quality and broadband-based digital infrastructure. Threshold findings indicate a regime-dependent trade-aviation relationship shaped by digital capacity.
Keywords
References
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Details
Primary Language
English
Subjects
Development Economics - Macro, Air Transportation and Freight Services
Journal Section
Research Article
Authors
Early Pub Date
May 31, 2026
Publication Date
-
Submission Date
February 23, 2026
Acceptance Date
April 8, 2026
Published in Issue
Year 2026 Number: Advanced Online Publication
APA
Balkar, O. E. (2026). The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations. Journal of Aviation, Advanced Online Publication. https://doi.org/10.30518/jav.1895096
AMA
1.Balkar OE. The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations. JAV. 2026;(Advanced Online Publication). doi:10.30518/jav.1895096
Chicago
Balkar, Oğuz Emre. 2026. “The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations”. Journal of Aviation, no. Advanced Online Publication. https://doi.org/10.30518/jav.1895096.
EndNote
Balkar OE (May 1, 2026) The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations. Journal of Aviation Advanced Online Publication
IEEE
[1]O. E. Balkar, “The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations”, JAV, no. Advanced Online Publication, May 2026, doi: 10.30518/jav.1895096.
ISNAD
Balkar, Oğuz Emre. “The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations”. Journal of Aviation. Advanced Online Publication (May 1, 2026). https://doi.org/10.30518/jav.1895096.
JAMA
1.Balkar OE. The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations. JAV. 2026. doi:10.30518/jav.1895096.
MLA
Balkar, Oğuz Emre. “The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations”. Journal of Aviation, no. Advanced Online Publication, May 2026, doi:10.30518/jav.1895096.
Vancouver
1.Oğuz Emre Balkar. The Influence of Digital Innovation Capability and Institutional Quality on Aviation Activities: Empirical Evidence of Threshold Effects Across Nations. JAV. 2026 May 1;(Advanced Online Publication). doi:10.30518/jav.1895096