Airports and the Production of Goods and Services
AbstractThis paper estimates the effects of airport infrastructure on local sectoral employment, using data from the United States. To address the potential endogeneity in the determination of airport locations and sizes, the 1944 National Airport Plan is used to instrument for the current distribution of airports. The Plan had a strong effect on subsequent airport construction but appears to have been unrelated to other factors for current sectoral employment. Airport size is found to have a positive effect on local employment in tradable services, with an elasticity of approximately 0.15, but no measurable effect on non-tradable services. There is a negative effect on manufacturing. The effects are relevant to the evaluation of airport construction or improvement projects that aim to attract firms by making travel to and from the local area more convenient.
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Bibliographic InfoPaper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2012:7.
Length: 30 pages
Date of creation: 05 Jul 2012
Date of revision: 17 Jan 2013
Contact details of provider:
Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
Web page: http://www.ne.su.se/
More information through EDIRC
Air transport; services trade; infrastructure;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-14 (All new papers)
- NEP-TRE-2012-07-14 (Transport Economics)
- NEP-TUR-2012-07-14 (Tourism Economics)
- NEP-URE-2012-07-14 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen Redding & Daniel M. Sturm & Nikolaus Wolf, 2007.
"History and Industry Location: Evidence from German Airports,"
CEP Discussion Papers
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- Stephen Redding & Daniel.M Sturm & Nikolaus Wolf, 2007. "History and industry location: evidence from German airports," LSE Research Online Documents on Economics 3680, London School of Economics and Political Science, LSE Library.
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"Roads and Trade: Evidence from the U.S,"
tecipa-479, University of Toronto, Department of Economics.
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"Airports and Urban Growth: Evidence from a Quasi-Natural Policy Experiment,"
40304, University Library of Munich, Germany.
- Bruce A. Blonigen & Anca D. Cristea, 2012. "Airports and Urban Growth: Evidence from a Quasi-Natural Policy Experiment," NBER Working Papers 18278, National Bureau of Economic Research, Inc.
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