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The role of airports in enhancing total factor productivity: Evidence from listed companies in China

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  • Song, Ge
  • Tan, Jing
  • Yao, Zhenjiu

Abstract

China's civil aviation industry has undergone far-reaching and comprehensive reforms to modernize and build a thriving industry in the 21st century. Developing aviation helps stimulate regional economic growth and improves local business efficiency. This study examines the impacts of air transport development on total factor productivity of local companies and explores the mediating effects of enterprise innovation and investor attention. Firstly, this paper calculates air accessibility as a measure of air transport development and uses the Olley-Pakes (OP) method to calculate total factor productivity of companies. Secondly, this paper adopts the panel fixed effect model to examine the impacts of air transport on total factor productivity based on the data of listed companies in China from 2000 to 2019. Thirdly, this paper constructs a mediating model to explore the mechanisms by considering enterprise innovation and investor attention as mediator variables. In the end, this paper explores the possible adverse risks of local government debt and population loss associated with the high costs of airport infrastructure construction and operation.

Suggested Citation

  • Song, Ge & Tan, Jing & Yao, Zhenjiu, 2025. "The role of airports in enhancing total factor productivity: Evidence from listed companies in China," Journal of Air Transport Management, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:jaitra:v:124:y:2025:i:c:s0969699724002035
    DOI: 10.1016/j.jairtraman.2024.102738
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