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The impact of airport opening on urban financial development: Evidence from China

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  • Hou, Meng
  • Jing, Puxuan
  • Ke, Di
  • Yang, Hangjun

Abstract

Airports play a vital role in connecting regions and promoting economic activities, particularly in stimulating urban financial development. To examine the relationship between airport opening and urban financial development, this study employs a time-varying difference-in-differences (DID) model to conduct an empirical analysis of panel data from 277 cities in China, covering the period from 2010 to 2019. Our findings reveal that airport opening significantly promotes urban financial development, primarily by accelerating capital flow and increasing wage rates. This positive effect is especially pronounced in the eastern and western regions of China.

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  • Hou, Meng & Jing, Puxuan & Ke, Di & Yang, Hangjun, 2025. "The impact of airport opening on urban financial development: Evidence from China," Transport Policy, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:trapol:v:172:y:2025:i:c:s0967070x2500318x
    DOI: 10.1016/j.tranpol.2025.103775
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