Accessing the causality among air transportation, trade openness and GDP: Evidence from a panel of high-income countries

Sushil Kumar Rai and T. Bangar Raju

Transport Policy, 2025, vol. 163, issue C, 116-124

Abstract: •The study reveals the long term relationship between air transportation infrastructure, GDP, and trade openness for 20 high income nations.•The study demonstrates that trade openness and air transportation infrastructure, including air transport passengers and freight, have a significant positive impact on GDP both in the long run and short run.•The study provides evidence of a causal relationship between air transport infrastructure, trade openness, and GDP in high income countries.•The findings of the study strengthen the efficacy of Air Transportation Led Growth Hypothesis (ALGH) in high-income countries.

Date: 2025
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DOI: 10.1016/j.tranpol.2025.01.012

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