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The Sky Is Not Flat: How Discriminatory Is the Access to International Air Services?

Author

Listed:
  • Roberta Piermartini
  • Linda Rousov?

Abstract

Using information on 2,300 Air Services Agreements covering 184 countries, we investigate the impact of air services liberalization on passenger flows. We find that a certain level of liberalization is required to have a positive effect on passenger traffic. In particular, we estimate that the multilateralization of multiple designation provisions, Open Skies Agreements and European Economic Area-type agreements would increase passenger traffic worldwide by 0.5, 5, and 10 percent, respectively. The potential endogeneity problem is carefully dealt with using instrumental variables and propensity score matching.

Suggested Citation

  • Roberta Piermartini & Linda Rousov?, 2013. "The Sky Is Not Flat: How Discriminatory Is the Access to International Air Services?," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 287-319, August.
    • Handle: RePEc:aea:aejpol:v:5:y:2013:i:3:p:287-319
    Note: DOI: 10.1257/pol.5.3.287
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. The Sky Is Not Flat: How Discriminatory Is the Access to International Air Services? (American Economic Journal: Economic Policy 2013) in ReplicationWiki

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