The causal relationship between GDP and domestic air passenger traffic in Brazil |
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Authors: | Elton Fernandes |
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Institution: | COPPE/UFRJ , Federal University of Rio de Janeiro, Centro de Tecnologia , Ilha do Fund?o, Rio de Janeiro, RJ, 21945-970, Brazil |
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Abstract: | Abstract This paper examines the causal relationship between economic growth and domestic air passenger transport in Brazil, using Granger's causality test. Total domestic passenger-kilometres are used as a proxy for air transport demand and gross domestic product as a proxy for economic growth. The test spans the period from 1966 to 2006. The results lead to the acceptance of the hypothesis that there is a unidirectional Granger causal relationship from economic growth to domestic air transport demand in Brazil, having a high elasticity in the short term. |
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Keywords: | air transport demand Granger causality multivariate time series Brazil |
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