IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v117y2026ics0739885926000855.html

Asymmetric responses of air travel demand to geopolitical risk: Evidence from Korea

Author

Listed:
  • Cho, Dooyeon
  • Sun, Joo Yeon

Abstract

Korea is recognized for its exposure to substantial and unpredictable swings in geopolitical conditions. This paper investigates the relationship between geopolitical risk and inbound air travel demand in Korea over the past decades. Our analysis documents significant and asymmetric responses of air travel demand to geopolitical risk. Increases in geopolitical risk are followed by a delayed decline in air travel demand, with the negative response materializing after approximately two quarters rather than immediately. This implies that travelers are inclined to be more cautious or conservative, possibly adjusting their travel decisions more significantly in response to perceived threats or uncertainties. In contrast, decreases in geopolitical risk are associated with a gradual positive adjustment in air travel demand. Overall, our findings suggest that while individuals demonstrate risk-averse tendencies in the face of heightened geopolitical risk, they subsequently adapt their travel plans, reflecting gradual adjustment in travel behavior following periods of heightened geopolitical uncertainty.

Suggested Citation

  • Cho, Dooyeon & Sun, Joo Yeon, 2026. "Asymmetric responses of air travel demand to geopolitical risk: Evidence from Korea," Research in Transportation Economics, Elsevier, vol. 117(C).
    • Handle: RePEc:eee:retrec:v:117:y:2026:i:c:s0739885926000855
    DOI: 10.1016/j.retrec.2026.101788
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885926000855
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2026.101788?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z30 - Other Special Topics - - Tourism Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:117:y:2026:i:c:s0739885926000855. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.