The Asymmetric Impact of Air Transport on the Economic Growth of Ecuador and its Bordering Countries: A Multidimensional Analysis
El Impacto Asimétrico del Transporte Aéreo en el Crecimiento Económico de Ecuador y sus Países Fronterizos: Un Análisis Multidimensional
DOI:
https://doi.org/10.29076/issn.2528-7737vol17iss44.2024pp1-16pKeywords:
Air transport, economic growth, NARDL, Ecuador, Perú, ColombiaAbstract
This study focuses on whether air transport drives economic growth in the context of Ecuador, Peru and Colombia. The research examines the asymmetric long-run and short-run impacts of air transport (AT) on Gross Domestic Product (GDP). To control for the endogeneity of the econometric model, control variables corresponding to additional determinants of growth are included. To achieve the objective of the study, the asymmetric non-linear autoregressive distributed lags (NARDL) methodology developed by Shin et al. (2014) is applied, in which the AT is decomposed into positive and negative changes. The unit root and bounds test are also examined. The empirical results show both short-run and long-run asymmetric impacts of AT on economic growth. It is shown that the AT has positive implications on growth in Ecuador and Colombia. This effect is the opposite for the Peruvian economy. The estimations show that, in the short run, the positive shocks of the AT have a different behaviour between them, so that the relationship between the AT and economic growth is negative for Ecuador and Colombia. In the case of Peru, the NARDL model has no significant results.
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