Causality Analysis Between Airline Industry and Economic Growth: An Empirical Application on Turkey

Unlike other means of transport, airline industry provides space and time benefits for consumers. Due to this feature, it is seen that the demand for airline industry is in a continuous increase trend. Academic research shows that the most important factor influencing airline demand is income. Therefore, income is assumed to be an important determinant of airline industry. In this study, the relationship between the demand for the airline in Turkey and the GDP was examined empirically for the period 1960-2015. As a method of study, we used Toda and Yamamoto (1995) causality and Hatemi-J (2012) asymmetric causality tests. Findings of the study show that there is a significant causality relationship between demand for airline and economic growt