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Ready for take-off? The economic effects of regional airport expansions in Germany

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  • Philipp Breidenbach

Abstract

Airports are an important factor of regional connectivity. Following the literature, a sufficiently dense airport network is an important determinant for growth. However, regional airports in Germany exhibit financial losses and depend on subsidies. This paper analyses the potential spillover effects of airports on the surrounding economies that may justify those subsidies by exploiting the deregulation of the European aviation market as a quasi-natural experiment. Subsequent airport expansions are evaluated in a difference-in-differences framework, making use of the exogenous shift in airport demand for regional airports due to the deregulation. Results show no evidence for spillover effects of Germany's regional airports.

Suggested Citation

  • Philipp Breidenbach, 2020. "Ready for take-off? The economic effects of regional airport expansions in Germany," Regional Studies, Taylor & Francis Journals, vol. 54(8), pages 1084-1097, July.
    • Handle: RePEc:taf:regstd:v:54:y:2020:i:8:p:1084-1097
    DOI: 10.1080/00343404.2019.1659948
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    Cited by:

    1. Pablo Brichetti, Juan & Sánchez González, Santiago & Giraldez, Francisca & Serebrisky, Tomás, 2024. "The airport access gap in Latin America and the Caribbean," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    2. Bergantino, Angela Stefania & Intini, Mario & Volta, Nicola, 2021. "The spatial dimension of competition among airports at the worldwide level: a spatial stochastic frontier analysis," European Journal of Operational Research, Elsevier, vol. 295(1), pages 118-130.
    3. Budd, Lucy & Ison, Stephen & Graham, Anne, 2024. "Factors affecting the cessation of commercial air services at English regional airports," Journal of Transport Geography, Elsevier, vol. 118(C).
    4. Pot, Felix Johan & Koster, Sierdjan, 2022. "Small airports: Runways to regional economic growth?," Journal of Transport Geography, Elsevier, vol. 98(C).
    5. Andrea Ascani & Alessandra Faggian & Sandro Montresor & Alessandro Palma, 2021. "Moving (within and across) spatial labour markets in times of COVID-19: evidence from Facebook mobility data on Italian labour market areas," Discussion Paper series in Regional Science & Economic Geography 2021-01, Gran Sasso Science Institute, Social Sciences, revised Jan 2021.
    6. Zuo, Wenbin & Chen, Fanglin, 2024. "Airport construction and entrepreneurship: Evidence from the newly registered company," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 369-386.
    7. Ascani, Andrea & Faggian, Alessandra & Montresor, Sandro & Palma, Alessandro, 2021. "Mobility in times of pandemics: Evidence on the spread of COVID19 in Italy's labour market areas," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 444-454.

    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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