The Causality Analysis of Airports and Regional Economy: Empirical Evidence from Jiangsu Province in China

Yang Bai and Cheng-Lung Wu
Additional contact information
Yang Bai: School of Civil Aviation, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China
Cheng-Lung Wu: School of Aviation, University of New South Wales, Sydney, NSW 2052, Australia

Sustainability, 2022, vol. 14, issue 7, 1-11

Abstract: China is the second largest aviation country in the world. The Chinese aviation industry and economy both developed quickly in the last two decades. However, the interaction mechanisms of aviation and the regional economy were different in each province. Jiangsu was the most important province in the Yangtze River delta region. The GDP of Jiangsu ranked second in China, but air transportation didn’t have the same leading position in the last decade. Taking Jiangsu province as for analysis, this paper provided empirical evidence of the causality between airport development and regional economic growth. The results showed that: (1) From 2008 to 2018, the overall volume of airport passenger throughput and GDP in Jiangsu had a strong upward trend with strong seasonal fluctuations; (2) There was a bi-directional Granger causality relationship between the airport passenger throughput and GDP in Jiangsu based on the vector autoregression (VAR) model and the Granger causality test; (3) From the impulse response and variance decomposition, the inter-contribution of GDP and airport development was sustainable and increasing over time. However, the impact of economic growth on airports was more significant than the impact of airports on economic growth.

Keywords: airport; regional economy; VAR model; granger causality analysis; impulse response; variance decomposition; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/7/4295/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/7/4295/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:7:p:4295-:d:786976

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().