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Liberalism in Foreign Trade versus Liberalism in Air Transportation - Is there a Link?

Author

Listed:
  • Martin Grancay

    () (Faculty of International Relations, University of Economics in Bratislava, Slovakia)

  • Nora Szikorova

    () (Faculty of International Relations, University of Economics in Bratislava, Slovakia)

Abstract

: The aim of this paper is to determine whether there is a statistically significant link between regulation of international civil aviation and protectionism against foreign trade. We use weighted air liberalization index (WALI) as a proxy for the level of regulation in a country’s foreign aviation relations; trade tariff restrictiveness index (TTRI) and overall trade restrictiveness index (OTRI) as proxies for the level of protectionism in a country’s foreign trade. Correlation analysis shows that there is no statistically significant link between the indicators. Hence, our research confirms the view that air transportation is a specific sector and it is subject to a different kind of policies than trade in goods. We also demonstrate that large high-income countries tend to have a more liberal approach to international civil aviation than small low-income countries

Suggested Citation

  • Martin Grancay & Nora Szikorova, 2014. "Liberalism in Foreign Trade versus Liberalism in Air Transportation - Is there a Link?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(6), pages 709-721, December.
  • Handle: RePEc:voj:journl:v:61:y:2014:i:6:p:709-721
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    References listed on IDEAS

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    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. James E. Anderson & J. Peter Neary, 1996. "A New Approach to Evaluating Trade Policy," Review of Economic Studies, Oxford University Press, vol. 63(1), pages 107-125.
    3. Micco, Alejandro & Serebrisky, Tomas, 2006. "Competition regimes and air transport costs: The effects of open skies agreements," Journal of International Economics, Elsevier, vol. 70(1), pages 25-51, September.
    4. Grancay, Martin, 2009. "International civil aviation - all together or all against all?," MPRA Paper 14091, University Library of Munich, Germany.
    5. Ivana Prica & Jelica Petrović VujaÄ ić, 2010. "Financial Services Liberalisation in Transition Countries and the Role of the WTO," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(4), pages 487-501, December.
    6. Rauf Gönenç & Giuseppe Nicoletti, 2003. "Regulation, market structure and performance in air passenger transportation," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 183-227.
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    1. repec:bla:worlde:v:40:y:2017:i:7:p:1494-1512 is not listed on IDEAS

    More about this item

    Keywords

    Liberalism; Protectionism; Foreign trade; Air transportation;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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