Sectorial Analysis of the Impact of Aviation Transport on Nigerian Economy: A Study of Four Selected International Airports (2003-2015)

Abstract

This study examined the impact of aviation sector on economic growth in Nigeria using four selected international airports activities namely; Murtala Muhammed International Airport, Ikeja, Lagos; Mallam Aminu Kano International Airport, Kano; Nnamdi Azikiwe International Airport, Abuja; and Port Harcourt International Airport, Port Harcourt between 2003-2015. The study employed error correction model in analyzing the model specified in the study. The result revealed positive connection amid the explained variable LGDP and explanatory variables; Passanger Traffic and Aircraft Movement for all the considered airports which are all in compliance with the apriori expectation. All the explanatory variables except passenger traffic and aircraft movement of Mallam Aminu Kano International Airport were significant in explaining economic growth in Nigeria. While the error correction term, ECM_t-1 with a high feedback of 84% has the expected negative sign and presented the rate at which disequilibrium will be adjusted back to equilibrium which also showed the existence of a strong relationship between the aviation sectors’ activities and economic growth in Nigeria. The study recommends that government should ensure continuous supervision of the activities of aviation sector so as to increase their services of connecting people, goods and services which in turn will create more economic value leading to economic growth and improve aviation infrastructures for a competitive advantage to that of other countries.