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Airport Activity and Local Development: Evidence from Italy


  • Marco Percoco

    (Department of Institutional Analysis and Public Management, Bocconi University, Piazza Sraffa 11, Milano, MI 20121, Italy,


The role of infrastructure as a factor of growth and development of countries and regions is often considered to be crucial. Among the various types of transport infrastructure, airports are considered as particularly strategic because of the increasing importance of air transport in connecting territories. This paper studies the impact of airports on Italian provinces. To this end, it builds on the framework proposed by Brueckner, where sectoral employment is regressed on a series of controls and on airline traffic. That framework is extended to take account of selection bias due to the location choices of airports and spatial spillover effects. It is found that the elasticity of service-sector employment to airport passengers is 0.045 and that of spillover effects due to neighbouring airports is almost 0.017.

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  • Marco Percoco, 2010. "Airport Activity and Local Development: Evidence from Italy," Urban Studies, Urban Studies Journal Limited, vol. 47(11), pages 2427-2443, October.
  • Handle: RePEc:sae:urbstu:v:47:y:2010:i:11:p:2427-2443

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    References listed on IDEAS

    1. Epstein, Gil S., 2002. "Informational Cascades and Decision to Migrate," IZA Discussion Papers 445, Institute for the Study of Labor (IZA).
    2. Louis de Mesnard, 2004. "Biproportional Methods of Structural Change Analysis: A Typological Survey," Economic Systems Research, Taylor & Francis Journals, vol. 16(2), pages 205-230.
    3. Rouwendal, Jan, 1999. "Spatial job search and commuting distances," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 491-517, July.
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