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IJSTR >> Volume 9 - Issue 6, June 2020 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



Panel Data Analysis Of Turkey's Air Export Demand Function

[Full Text]

 

AUTHOR(S)

Etimad Rahimli, Ilkin Mammadov, Javid Suleymanli, Tural Valiyev

 

KEYWORDS

Turkey, air, transport, air transport, export demand function, panel data analysis.

 

ABSTRACT

Istanbul Airport, opened in the recent period, has brought a lot of questions in line with creating economic contribution to Turkey. As a result of numerous literature reviews, developments in air transport might be thought to have a positive impact on the economy of the country by accelerating exports. This issue has been the main source of motivation for the determination of export demand by air. In order to determine the model of export demand by air 20 countries, to which Turkey mainly exports, were identified and data regarding to these exports between the years 2000-2017 is collected. As the explanatory variables for panel data modeling, the Real Gross Domestic Product, The Relative Price Index and The Population of these 20 countries were included in the model. In order to determine the consistent model, firstly the correlation between the units was tested and it was concluded that the model structure was homogeneous. In the following stages, Fixed Effects Model and Random Effects Models were developed for homogeneous panel structure and the most relevant model was determined. After testing the assumptions of the appropriate model, necessary corrective actions were taken and the model was interpreted economically. As a result, while the independent variables are fixed, it is determined that the increase in real GDP of the country exported by air will increase the amount of exports by air, the increase in the population of the exporting country will increase the amount of exports by air, and the relative prices of the exporting country will decrease the amount of exports by air.

 

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