AVIATION INDUSTRY AND IMPLICATION FOR ECONOMIC DEVELOPMENT IN NIGERIA
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Abstract
This work is an evaluation of the influence of aviation sector development on economic development in Nigerian. Over the years, various governments of Nigeria have put in place a series of policy instruments for the development of the aviation sector as sinews to bolster the desired growth. But air transport system continues to mirror inefficiency, mismanagement and airline mishap. This study developed a series of econometrics models including dynamic ordinary regression equation, cointegration, error correction model and granger causality techniques to examine the relationship between air transport and economic growth. The analyses suggests a positive influence of air transport on economic growth, a long run equilibrium relationship and a causal unidirectional relations from air transport to economic growth. The diagnostic test for the normality of the model showed that the model functional form is adequate, stable with no serial correlation. From the analysis, this study recommends a proactive and dynamic cohesive transport policy that benefits all the stakeholders. Also, the sector must improve on its managerial expertise guided by adequate transparency and accountability in order to achieve results and develop the sector to an international standard worthy of emulation.
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