Regional aviation and economic growth : cointegration and causality analysis in Australia

Baker, Douglas, Merkert, Rico, & Kamruzzaman, Md. (2015) Regional aviation and economic growth : cointegration and causality analysis in Australia. Journal of Transport Geography, 43, pp. 140-150.

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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.

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8 citations in Web of Science®

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ID Code: 81898
Item Type: Journal Article
Refereed: Yes
Keywords: Regional air transport, Economic growth, Causality analysis, Australia
DOI: 10.1016/j.jtrangeo.2015.02.001
ISSN: 0966-6923
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > URBAN AND REGIONAL PLANNING (120500) > Regional Analysis and Development (120505)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > TRANSPORTATION AND FREIGHT SERVICES (150700) > Air Transportation and Freight Services (150701)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2015 Elsevier Ltd.
Copyright Statement: NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Transport Geography. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Transport Geography, Volume 43, February 2015, DOI: 10.1016/j.jtrangeo.2015.02.001
Deposited On: 18 Feb 2015 22:50
Last Modified: 22 Feb 2015 05:17

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