THE EFFECTS OF AIR TRANSPORTATION ON GLOBAL VALUE CHAIN UPGRADING

International trade volumes that have grown at a high rate since the 19th century also led to the continuous change and development theories as to research this area. The production processes that started to take on a very different structure especially in the last century with commercial expansions and the transition from the national to the international have brought about the changes in the processes related to the economical, social and political infrastructures of the countries along. The fact that developing countries are integrated with deeper links to the world economy leads them to increase their activities in global value chains and increase their value-added production processes in the chain. Accordingly the changing structure of international trade the study is examined under the title Global Value Chains, which is based on revealing the roles of all actors involved in production processes in commercial relations. However the study examine that the relations between forward-participation processes (upgrading) in the global value chains and: air cargo transportation volumes of countries. Data have collected from World Bank and OECD Data Banks for 45 countries between 2000-2011. For analyzing the effects of air Cargo transportation volumes on upgrading the generalized methods of moments (GMM) which is a type of dynamic panel data analysis has used. The findings show that upgrading in global value chains is influenced by air Cargo transportation volumes of countrie