Dynamic Relationship between Air Transpo

This study aims to examine the dynamic relationship between air transport and economic growth in Bangladesh. To fulfill this aim, the study inspects both the short-run and long-run dynamic relationship between air transport (from the perspective of air transport (registered carrier departures worldwide), air transport (freight), and air transport (passengers carried)) and economic growth in Bangladesh. The methodology of the study is based on econometric analysis including the Augmented Dickey-Fuller (ADF) unit root test, lag length criteria, and the autoregressive distributed lag (ARDL) model using annual time-series data from the period 1985 to 2020. All data are collected from the World Development Indicators (WDI) database. The results show that, in the long run, air transport (passenger carried) has a positive significant effect on economic growth in Bangladesh. However, in the short run, air transport (registered carrier departures worldwide) has a positive but insignificant effect on economic growth. These findings suggest that paying attention to air transport (passenger carried) could rapidly increase the aviation sector's share of GDP growth. The study findings will be a valuable source of information for the Bangladesh government to develop better aviation policies that would boost the country's economy. This research will also enlarge the body of existing literature on air transportation in Bangladesh.