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The role of air transport in employment creation and inclusive growth in the Global South: The case of South Africa

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  • Njoya, Eric Tchouamou
  • Nikitas, Alexandros

Abstract

This paper investigates the claim that air transport development may be an engine for inclusive economic growth and poverty reduction in developing and emerging countries, using the example of South Africa, a country with high income inequality and rising air traffic volume. A social accounting matrix (SAM) model is adopted to assess the strengths of backward and forward linkages between the air transport sector and the local economy, and a computable general equilibrium (CGE) model is used to estimate the economy-wide impact of air transport expansion in South Africa. The results show that air transport has a significant effect on output, incomes and employment, and that its importance lies in its considerable backward linkage effects. Income and employment effects are found to be unevenly distributed in the economy, the biggest winners being households in the highest expenditure decile, as well as highly skilled labour. It is concluded that unless accompanied by improvements in education and training for low-skilled workers, air transport expansion may lead to a widening of income inequality in South Africa.

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  • Njoya, Eric Tchouamou & Nikitas, Alexandros, 2020. "The role of air transport in employment creation and inclusive growth in the Global South: The case of South Africa," Journal of Transport Geography, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:jotrge:v:85:y:2020:i:c:s0966692319310701
    DOI: 10.1016/j.jtrangeo.2020.102738
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    3. Tomas Kliestik & Alena Novak Sedlackova & Martin Bugaj & Andrej Novak, 2022. "Stability of profits and earnings management in the transport sector of Visegrad countries," Oeconomia Copernicana, Institute of Economic Research, vol. 13(2), pages 475-509, June.
    4. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    5. Nfor Delphine Mbongsi & Nges Marcel, 2022. "Impacts of Sisyphean Socio-Political Instability on Tourism in Belo Subdivision, North West Region-Cameroon," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 771-778, October.
    6. Hanson, Daniel & Toru Delibasi, Tuba & Gatti, Matteo & Cohen, Shamai, 2022. "How do changes in economic activity affect air passenger traffic? The use of state-dependent income elasticities to improve aviation forecasts," Journal of Air Transport Management, Elsevier, vol. 98(C).
    7. Zhao, Bing & Wu, Hao & Wang, Nuo, 2022. "Changing characteristics of the industrial correlation and economic contribution of air transport in China: An input–output analysis," Journal of Air Transport Management, Elsevier, vol. 104(C).
    8. Jacques Charlier, 2020. "South Africa’s contemporary airport geography, between past market dynamics and an uncertain future [La géographie aéroportuaire sud-africaine contemporaine, entre la dynamique récente du marché et," Post-Print hal-03325896, HAL.
    9. Avishek Khanal & Mohammad Mafizur Rahman & Rasheda Khanam & Eswaran Velayutham, 2022. "Exploring the Impact of Air Transport on Economic Growth: New Evidence from Australia," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    10. Tolcha, Tassew Dufera & Bråthen, Svein & Holmgren, Johan, 2020. "Air transport demand and economic development in sub-Saharan Africa: Direction of causality," Journal of Transport Geography, Elsevier, vol. 86(C).

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