Macroeconomic determinants of air transportation: a time series analysis on Turkey

The aim of this study is to analyze the relationship between macroeconomic variables and air transportation in Turkey. Within this scope, the period of 1983 and 2015 was considered as empirical. In this study, air transportation variables such as domestic passenger, international passenger and international cargo were used. In the study, three different models were established based on domestic passenger, international passenger and international Cargo variables which are assumed to be related to macroeconomic factors. In the first model, the relationship between the number of domestic passengers and the per capita gross domestic product (GDP), interest rate and consumer price index (CPI) was examined. In the second model, the relationship between the number of international passengers and the gross domestic product (GDP), the interest rate and the consumer price index (CPI) is considered. In the third and last model, the relationship between the cargo volume change and gross domestic product (GDP), foreign trade volume, industrial production index and foreign direct investment amount was investigated. Findings of the study show that per capita income, gross domestic product and consumer price index variables are influential in the number of domestic and international passengers. Gross domestic product and industrial production index variables have a significant effect on the amount of international cargo shipments.