Abstract
This study aims to analyze the causal relationship between air transportation and economic growth in Indonesia. The data used are annual time series data from 1990 to 2017 obtained from World Bank. Data analysis method used is method of Vector Error Corection Model (VECM). The results show that there is a relationship between air transport tax and economic growth in Indonesia. Where is the tax of air transport (passenger and goods) and economic growth (GDP). Based on the granger variable or passenger variables test results and the GDP variable indicates that it remains granger-related with significant 1 percent action. Based on these findings it is hoped that further research is suggested to examine the effect of ticket prices or air fares in order to improve economic growth in Indonesia.
Highlights
The development of a region in Indonesia aims to improve the welfare of Indonesian society
The analysis model used in this research is the Vector Auto regression model (VAR)
Further stastioneritas stages done at the first difference level and obtained the results that the variable CRG, PSR, Gross Domestic Product (GDP) has no roots unit at the level of 1 percent
Summary
The development of a region in Indonesia aims to improve the welfare of Indonesian society. For that development requires a proper approach, in order to generate growth with equity, one of which transportation. Transportation is one means that influence the achievement of economic development success in a region. It serves to improve the integration of the territory of Indonesia. Air transport has become one of the most important modes of transport for medium and long-distance travel. The main infrastructure that handles air transport movement is the airport. Airports in Indonesia become transportation infrastructure that has a very fast development. Demand from passengers is increasing as human mobility increases. The high demand directly affects the airline's flying schedule request
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