The Effects of Economic Growth and Forei

The major goal of this research paper is to investigate the relationship among Turkish economic growth, airway transportation, and foreign direct investment (FDI). The authors implemented econometric models including Multiple Linear Regression (MLR), Johansen co-integration test, and Vector Autoregressive (VAR) model to derive results. The variables involved were incorporated into the Vector Autoregressive Model and tested for co-integration using Johansen methods. The results revealed a long-term relationship between GDP, FDI, and air transportation. Further analysis using variance decomposition and Impulse Response methodology indicated that the effect of GDP on air transportation was greater than that of FDI. The findings suggest that economic growth significantly contributes to the civil aviation sector in Turkey, supporting the premise that there is a mutual influence between the economies and air transportation services. This study emphasizes the importance of economic conditions for the aviation industry and calls for further investigations into the economic interactions influencing air transport dynamics.