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Border effects for domestic and international Canadian passenger air travel

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  • Hazledine, Tim
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    Abstract

    An augmented gravity model of passenger air travel between five Canadian airports and destinations within and without of Canada reveals a substantial border effect. After controlling for GDP, populations and distance, the number of seats offered on domestic routes is about six times the number on international flights. This result is consistent with the border effects found in studies of international merchandise trade.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Air Transport Management.

    Volume (Year): 15 (2009)
    Issue (Month): 1 ()
    Pages: 7-13

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    Handle: RePEc:eee:jaitra:v:15:y:2009:i:1:p:7-13

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    Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/

    Related research

    Keywords: Border effect; Passenger air travel; Airports;

    References

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    1. Bhadra, Dipasis & Kee, Jacqueline, 2008. "Structure and dynamics of the core US air travel markets: A basic empirical analysis of domestic passenger demand," Journal of Air Transport Management, Elsevier, vol. 14(1), pages 27-39.
    2. Henning Klodt, 2004. "Border Effects in Passenger Air Traffic," Kyklos, Wiley Blackwell, vol. 57(4), pages 519-532, November.
    3. John F. Helliwell, 1995. "Do National Borders Matter for Quebec's Trade?," NBER Working Papers 5215, National Bureau of Economic Research, Inc.
    4. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-23, June.
    5. Volker Nitsch, 2000. "National borders and international trade: evidence from the European Union," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 1091-1105, November.
    6. Reiss, Peter C & Spiller, Pablo T, 1989. "Competition and Entry in Small Airline Markets," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages S179-202, October.
    7. Matsumoto, Hidenobu, 2007. "International air network structures and air traffic density of world cities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(3), pages 269-282, May.
    8. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
    9. John F. Helliwell & Geneviève Verdier, 2001. "Measuring internal trade distances: a new method applied to estimate provincial border effects in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 34(4), pages 1024-1041, November.
    10. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc.
    11. Keith Head & John Ries, 2001. "Increasing Returns versus National Product Differentiation as an Explanation for the Pattern of U.S.-Canada Trade," American Economic Review, American Economic Association, vol. 91(4), pages 858-876, September.
    12. Jeffrey A. Frankel & Andrew K. Rose, 2000. "Estimating the Effect of Currency Unions on Trade and Output," NBER Working Papers 7857, National Bureau of Economic Research, Inc.
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    Cited by:
    1. Craig A. Gallet & Hristos Doucouliagos, 2014. "The Income Elasticity Of Air Travel: A Meta-Analysis," Economics Series 2014_6, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
    2. Chang, Li-Yen, 2014. "Analysis of bilateral air passenger flows: A non-parametric multivariate adaptive regression spline approach," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 123-130.
    3. Elwakil, Omar Sherif & Windle, Robert J. & Dresner, Martin E., 2013. "Transborder demand leakage and the US–Canadian air passenger market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 45-57.
    4. Chang, Li-Yen, 2012. "International air passenger flows between pairs of APEC countries: A non-parametric regression tree approach," Journal of Air Transport Management, Elsevier, vol. 20(C), pages 4-6.

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