Abstract

The relationship between direct flights has attracted attention in the literature. Case in point Turkish Airlines opened many new routes between the years 1998 and 2015. In this paper, we investigated impact of airline flight on export. To achieve this, using 51 first time destinations of Turkish Airlines, which opened 145 new destinations between 1998 and 2015, impact of direct flight on exports is analyzed by controlling bilateral real exchange rates and GDP with a panel data method accounting for endogeneity (using Arnello Bond method) between direct international flights and exports. Results suggest each additional first time direct flight increases the exports to those destinations by 12.7 %.

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