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Do non-stop flights boost exports?

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Author Info

  • Marco Alderighi

    ()
    (University of Valle d'Aosta and Bocconi University)

  • Alberto Gaggero

    ()
    (Department of Economics and Management, University of Pavia)

Abstract

We 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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File URL: http://economia.unipv.it/docs/dipeco/quad/ps/RePEc/pav/demwpp/DEMWP0012.pdf
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Bibliographic Info

Paper provided by University of Pavia, Department of Economics and Management in its series DEM Working Papers Series with number 012.

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Length: 38 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:pav:demwpp:012

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Keywords: airlines; export; full-service carriers; low-cost carriers; manufacturing.;

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