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Impact of Air Transport on the Indonesia

Abdillah Arif Nasution, Zul Azmi

2026enair transporteconomic growthIndonesiaairportsinfrastructureregional development

Abstract

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This study aims to analyze the causal relationship between air transportation and economic growth in Indonesia. The data used are annual time series data from 1990 to 2017 obtained from the World Bank. The methodology employed is the Vector Error Correction Model (VECM) to assess the relationship. The results indicate a significant connection between air transport taxation and economic growth in Indonesia, particularly highlighting the relationship between both passenger and goods transport taxes with GDP growth. Specifically, the Granger causality tests reveal that the passenger variables and GDP variable maintain a significant relationship at the 1 percent level. Based on these findings, it is suggested that further research should investigate the impact of ticket prices or airfares on economic growth to provide additional insights for policy makers in Indonesia.

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Cite This Work

@article{e5820fa8-d957-4c71-aca0-8f79c8dc9b2d,
  title={Impact of Air Transport on the Indonesia},
  author={Abdillah Arif Nasution and Zul Azmi},
  year={2026},
  language={en}
}
TY  - JOUR
TI  - Impact of Air Transport on the Indonesia
AU  - Abdillah Arif Nasution
AU  - Zul Azmi
PY  - 2026
LA  - en
ER  -

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