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Cheaper and Faster: The Role of Air Services Agreements on Transportation

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  • Charlotte Emlinger
  • Amélie Guillin

Abstract

We assess the impact of bilateral air services agreements (ASAs) on air transportation using an unique dataset providing direct observations of bilateral air transport cost and time for a standardized good, for 1,190 country-pairs, between 2011 and 2015. Our results show that ASAs reduce transportation cost by 8% while they only impact transportation time for landlocked countries and RTA members. Our estimates also reveal that bilateral trade decreases cost of transport, which highlights the role of backhauling in air transportation.

Suggested Citation

  • Charlotte Emlinger & Amélie Guillin, "undated". "Cheaper and Faster: The Role of Air Services Agreements on Transportation," Working Papers 2023-17, CEPII research center.
    • Handle: RePEc:cii:cepidt:2023-17
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    More about this item

    Keywords

    Transport Cost; Transport Time; Air Services Agreements; Trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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