Air Connectivity and International Trade Dynamics: The Case of Istanbul Airport (IGA)
by HAVADER Editör Ekibi
Thinking of an airport as simply moving passengers from point A to point B misses the bigger picture. Airports are also economic nodes where business people meet, deals get signed, and goods move through indirect channels. This study numerically tests that connection using Istanbul Airport (IGA) as its case.
Istanbul Airport sits at the crossroads of Europe, Asia, and the Middle East, making it one of the world's largest airports and a major hub for global transport routes stretching from North America to the Asia-Pacific region. This study's goal was to examine the long-run relationship between passenger traffic at the airport and Turkish export activity, using the ARDL bounds testing approach on monthly 2020-2025 data.
The analysis found a statistically significant long-run cointegrating relationship among the variables; air passenger traffic, oil prices, exchange rates, and industrial production all positively and significantly affect Turkish exports. In other words, a rise in passenger numbers at an airport can be linked to a directly measurable rise in exports.
What this study contributes is showing that airport investments shouldn't be evaluated purely from a "passenger comfort" or "tourism" lens, but as a direct trade-policy tool. An everyday analogy: it's similar to how a city investing in a central bus terminal doesn't just make passenger travel more comfortable — it also boosts business volume for the shops connected to that terminal. As connectivity grows, so does the economic activity around it.
In the end, this research shows that Istanbul Airport's connectivity delivers a measurable, structural contribution to Turkey's integration into global trade — suggesting aviation infrastructure investment should be treated as a strategic trade-policy priority too.
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Istanbul Airport sits at the crossroads of Europe, Asia, and the Middle East, making it one of the world's largest airports and a major hub for global transport routes stretching from North America to the Asia-Pacific region. This study's goal was to examine the long-run relationship between passenger traffic at the airport and Turkish export activity, using the ARDL bounds testing approach on monthly 2020-2025 data.
The analysis found a statistically significant long-run cointegrating relationship among the variables; air passenger traffic, oil prices, exchange rates, and industrial production all positively and significantly affect Turkish exports. In other words, a rise in passenger numbers at an airport can be linked to a directly measurable rise in exports.
What this study contributes is showing that airport investments shouldn't be evaluated purely from a "passenger comfort" or "tourism" lens, but as a direct trade-policy tool. An everyday analogy: it's similar to how a city investing in a central bus terminal doesn't just make passenger travel more comfortable — it also boosts business volume for the shops connected to that terminal. As connectivity grows, so does the economic activity around it.
In the end, this research shows that Istanbul Airport's connectivity delivers a measurable, structural contribution to Turkey's integration into global trade — suggesting aviation infrastructure investment should be treated as a strategic trade-policy priority too.