Investigating causality in international air freight and business travel: The case of Australia

David Tan and Kan Tsui
Additional contact information
David Tan: University of New South Wales, Australia
Kan Tsui: Massey University, New Zealand; The Chinese University of Hong Kong, Hong Kong

Urban Studies, 2017, vol. 54, issue 5, 1178-1193

Abstract: Few studies have examined the link between air cargo and business travel, despite there being a generally accepted understanding that these two variables are inextricably related to each other. This paper examines the relationship between air cargo and business travel at the international level and analyses how these two variables are causally related. Moreover, we break down the sample into three major Australian states (New South Wales, Queensland, and Victoria), as each possesses a distinct flavour in trade and commerce. Utilising Granger causality methods, we have found evidence that there is a direct causal relationship between business travel and air cargo in the short run, and a bi-directional relationship in periods of 12 months and longer. The nature of the Granger causality at the state-level substantially differs from state to state, suggesting that the economic landscape of Australia’s local economy has a significant impact on the air cargo and business travel relationship.

Keywords: air cargo; Australia; business travel; Granger causality; vector autoregression (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0042098015620520 (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:sae:urbstu:v:54:y:2017:i:5:p:1178-1193

DOI: 10.1177/0042098015620520

Access Statistics for this article

More articles in Urban Studies from Urban Studies Journal Limited
Bibliographic data for series maintained by SAGE Publications ().