Full Project – AVIATION INDUSTRY AND IMPLICATION FOR ECONOMIC DEVELOPMENT IN NIGERIA
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BACKGROUND OF THE STUDY
Aviation has become an integral part of the socioeconomic life of the country. According to Igbatayo and Igbinedion (2014: 1), the aviation industry can be defined as those activities that relate directly to transporting people and goods by air from one place to another. The industry comprises various activities such as airline and transport operations, general aviation aircraft maintenance, scheduled and chartered flights for passengers and freight, as well as air traffic control and regulation. It also includes activities directly serving air passengers, such as check-in, baggage
-handling and on-site retail and catering facilities (OEF, 1999)cited in ( Igbatayo and Igbinedion 2014:3).
It is important to note that the aviation sector is regarded as a strategic industry, not only for its potential for economic growth but also its crucial role in national development and regional integration. As put by (OEF 1999), the most important contribution aviation often makes to the economy is through its impact on the performance of other industries and as a facilitator of their growth.
The aviation industry is part of transport infrastructure on which many other part of the
economy depends. It contributes to the economic growth, providing better transport link
across the economy. It facilities international trade by providing fast transportation network (Ismail et al 2014: 93).
STATEMENT OF THE PROBLEM
The aviation industry is a sector in its own right employing aviation workers and providing livelihood opportunity to service providers in the industry. According to Owopoti (2014: 2), the industry facilitates productivity growth because of its position as rapidly growing sector that catalyzes foreign direct investment, tourism and related
industries. This was further emphasised by (Perovic 2013: 57) when he argued that the industry has a significant benefit in the Nigerian economy, supporting Nigeria GDP of about 4% and job creation of about 159,000 of Nigerian working force, contribution to tourism industry and foreign investment in the Nigerian economy. He further notes that the aviation industry supports tourism and international business by providing the world’s only rapid worldwide transportation network. However, the Nigerian aviation industry is yet to contribute significantly to economic growth. Despite the potential of the sector to create employment and spur the development of other industries, such as the tourism and hospitality sector. The lack of adequate infrastructure and some other challenges have constrained the aviation industry in Nigeria. This contradictory view is authors in examining the role of aviation industry in the economic development of Nigeria spurred interest in researching this topic. Many authors have examined the aviation industry in Nigeria; while some argued that the implications have been positive, some argued that it has been negative while some argued that the aviation industry has not had any implication on the economic development of Nigeria. This study intends to fill this gap in the literature by examining the aviation industry and its implication for Nigerian economic development. Emphasis will be placed on the nature of the aviation sector in Nigeria since inception and how it has contributed to economic development.
OBJECTIVES OF THE STUDY
The main objective of this study is to examine the implication of aviation industry in the economic development of Nigeria. In order to achieve this objective, the following are the specific objectives:
1.) Examine the aviation industry in Nigeria since inception
2.) Explore how the activities of the aviation industry have influenced the economic development of Nigeria.
3.) Investigate the relationship between aviation industry and economic development.
RESEARCH QUESTIONS
1.) What is aviation industry?
2.) What is the relationship between aviation industry and economic development?
3.) What is the role of aviation industry in the economic development of a country?
4.) What are the implications of the aviation industry on the economic development of Nigeria.
SIGNIFICANCE OF THE STUDY
This study is very significant as it provides a unique way of exploring into the factors that can contribute to the economic development of Nigeria. It has been discovered that little emphasis has been placed on the implications of aviation industry in economic development and hence, exploring this topic will add significantly to the literature and further provide ways by which the industry can be fully maximised in developing the economy.
It will also help student researchers to fully understand the aviation industry and further write on the topic.
SCOPE OF THE STUDY
This study covers the aviation industry in Nigeria right from inception, and the contributions and activities of this industry to the economic development of Nigeria.
RESEARCH HYPOTHESIS
1.) There is no significant relationship between aviation industry and economic development.
2.) There is significant relationship between aviation industry and economic development.
LIMITATION OF THE STUDY
This study is really limited in terms of gathering materials. The aviation industry is a very strategic sector of the economy and as such enough materials were not found.
DEFINITION OF TERMS
1.) Aviation industry: this can be defined as those activities that relate directly to transporting people and goods by air from one location to another (Igbatayo and Igbinedion 2014: 1)
2.) Economy: this refers to a man made organization for the satisfaction of human wants. It is a system by which people get a living.
3.) Economic development: It can be defined as the development of economic wealth of countries, regions or communities for the well-being of their inhabitants. From a policy perspective, economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base (Salmon Valley and Innovation Centre).
References
1.) Igbatayo, S. and Igbinedion, S. (2014), “The State of Nigeria’s Aviation Industry and Implications for Economic Development”, PHD.
2.) Ismail M., Musa I., Daniel, D., Gaddafi A. (2014), “Analysis of the economic benefits of Gombe International Airport in Nigeria”, Global Journal of Research and Review, 1(3): 93-102.
3.) Owopoti, A. (2015), “Aviation Industry Development in the Nigeria Economy”, JORIND 13(2): 1-10.
4.) Perovic, J. (2013), “The Economic Benefits of Aviation and Performance in the Travel and Tourism Competitiveness Index”, The Travel & Tourism Competitiveness Report.
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