Do non-stop flights boost exports?
AbstractWe study empirically the role of air service in boosting exports. We focus on the link between non-stop flights and outgoing trade of the Italian manufacturing sector in Europe using a panel of 12,000 half- yearly observations ranging from 1998 to 2010. The analysis shows that the supply of non-stop flights provided by Full-Service Carriers (FSCs) has a positive impact on the exports of Italian regions, whilst no significant evidence of this is found for Low-Cost Carriers. After taking the endogeneity of flight frequency into account, the estimates indicate that the elasticity of exports to FSC non-stop flights is about 10 percent.
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Bibliographic InfoPaper provided by University of Pavia, Department of Economics and Management in its series DEM Working Papers Series with number 012.
Length: 38 pages
Date of creation: Oct 2012
Date of revision:
airlines; export; full-service carriers; low-cost carriers; manufacturing.;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- F10 - International Economics - - Trade - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-17 (All new papers)
- NEP-EUR-2012-11-17 (Microeconomic European Issues)
- NEP-INT-2012-11-17 (International Trade)
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