TESTING LINEARITY IN THE LONG-RUN RELATIONSHIP BETWEEN ECONOMIC GROWTH AND PASSENGER AIR TRANSPORT IN MEXICO

International journal of transport economics, issn 0391-8440 · e-issn 1724-2185, vol. xliii · no. 4 · november 2016

Juan Gabriel Brida, Martín Alberto Rodríguez-Brindis, Bibiana Lanzilotta, Silvia Rodríguez-Collazo

Abstract :

This paper analyzes the dynamic relationship between Mexican air transport
expansion and economic growth. To this end, non-parametric cointegration techniques and
non-parametric causality tests are introduced and applied to quarterly data of GDP and
number of air passengers in Mexico for the period 1995-2013. These procedures allow to
test the existence of long run relationship between the variables and to decide whether the
model is linear or not. The empirical results show the existence of a cointegration relationship
between air transport and economic growth, and that this relationship is linear. In addition,
the nonparametric causality tests conirm bidirectional causality between transport
and growth.

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