FRESH INSIGHT ON ECONOMIC AND SOCIOECONOMIC DETERMINANTS OF AIR TRAVEL DEMAND IN NIGERIA

Abstract

This study aims to investigate the effect of air travel demand determinants in Nigeria in respect to economics, during the specified period (1980 to 2017) by using a simple linear regression model with two dependent variables and seven independent variables. The unit root test and Co-integration test were observed, which shows there is a long-run relationship running between the selected variables. Ordinary least square (OLS) was estimated. The R- square indicated there is a better fit of the model, while the adjusted R-square showed that there is a better improvement of the model both in the first dependent and the second dependent variable. The empirical result reveals that air transport’s registered carrier departures worldwide is the most important variable which determines that air travel demand both in first and second results, which showed a positive impact on air travel demand with a significant probability. The result stipulates that a one percent increase in air transport’ registered carrier departures worldwide will increase air transport passengers carried. This stipulates that there is a high demand for air transport in Nigerian but the supply was not enough.