This paper applies recent panel methodology to examine the short-run dynamics, the long-run equilibrium relationships and the Granger causal relationship between economic growth and domestic air passenger traffic. It is based on the quarterly panel data of 29 provinces in China from the period...

Air transport demand forecasting is receiving increasing attention, especially because of intrinsic difficulties and practical applications. Total passengers are used as a proxy for air transport demand. However, the air passenger time series usually has a complex behavior due to their...