Exploring the Impact of Air Transport on Economic Growth: New Evidence from Australia
Article
Article Title | Exploring the Impact of Air Transport on Economic Growth: New Evidence from Australia |
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ERA Journal ID | 41498 |
Article Category | Article |
Authors | Khanal, Avishek (Author), Rahman, Mohammad Mafizur (Author), Khanam, Rasheda (Author) and Velayutham, Eswaran (Author) |
Journal Title | Sustainability |
Journal Citation | 14 (18), pp. 1-17 |
Article Number | 11351 |
Number of Pages | 17 |
Year | 2022 |
Publisher | MDPI AG |
Place of Publication | Switzerland |
ISSN | 2071-1050 |
Digital Object Identifier (DOI) | https://doi.org/10.3390/su141811351 |
Web Address (URL) | https://www.mdpi.com/2071-1050/14/18/11351 |
Abstract | The COVID-19 pandemic has impacted all sectors of the tourism industry, particularly air transportation. However, air transport remains an important contributor to economic growth globally. Thus, this study examines whether air transport (a proxy for tourism) stimulates economic growth to validate the air-transportation-led growth hypothesis (ALGH) in the Australian context. To conduct the study, we analyse the asymmetric long-run and short-run impacts of the air passengers carried (a proxy for tourism) on the gross domestic product (GDP) in Australia. We use the nonlinear autoregressive distributed lag (NARDL) modelling approach on data for Australia from 1971 to 2019. We also examined the effects of selected control variables (i.e., energy consumption, financial development, socialisation, and urbanisation) on economic growth. In both the short and long run, we observed statistically significant asymmetric impacts of air transport on economic growth. The positive shocks in air transport propel the long-term growth of Australia’s economy. Additionally, according to the findings, negative shocks of air transport have a stronger detrimental impact on economic development than positive shocks. |
Keywords | air transport; economic growth; ALGH; NARDL; Australia |
ANZSRC Field of Research 2020 | 380202. Econometric and statistical methods |
380199. Applied economics not elsewhere classified | |
Byline Affiliations | School of Business |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q7v2z/exploring-the-impact-of-air-transport-on-economic-growth-new-evidence-from-australia
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