Air Transportation Services: Both A Traded Commodity And A Transactions Cost In International Trade
Air transportation is a major facilitator of international trade in terms of the value of goods and services involved, and is important to specific industries, such as tourism, that are being developed by many lower income countries. High air transportation costs can pose a major impediment to the economic growth of countries, or to regions within them. But international air transportation is also an industry in its own right that can earn profits and foreign exchange for the parenting country. The newer international trade models treat transportation as a transactions cost, reductions of which confer in most cases, a gain to trading partners. Reducing air transportation costs, if resulting from rent seeking activities in protected markets, can, however reduce income for the air transportation-providing country and may impact on its foreign exchange earnings. This can reduce the incentive for a country to participate in Open Skies type situations where international air services are offered in a competitive market. Furthermore liberal trade in air transportation services can, in some cases lead to potentially less efficient provision of these services.
Volume (Year): 01 (2010)
Issue (Month): 01 ()
|Contact details of provider:|| Web page: http://www.worldscinet.com/jicep/jicep.shtml|
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Forsyth & Kenneth Button & Peter Nijkamp (ed.), 0. "Air Transport," Books, Edward Elgar Publishing, number 2265, April.
- Yamaguchi, Katsuhiro, 2008. "International trade and air cargo: Analysis of US export and air transport policy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(4), pages 653-663, July.
- David Greenaway & Chris R. Milner, 2006. "Recent Developments in Intra-Industry Trade: Introduction by Guest Editors," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 425-432, October.
- Button, Kenneth J. & Taylor, Samantha Y, 2000.
"International Air Transportation And Economic Development,"
ERSA conference papers
ersa00p483, European Regional Science Association.
- Button, Kenneth & Taylor, Samantha, 2000. "International air transportation and economic development," Journal of Air Transport Management, Elsevier, vol. 6(4), pages 209-222.
- Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
- Button, Kenneth & Lall, Somik & Stough, Roger & Trice, Mark, 1999. "High-technology employment and hub airports," Journal of Air Transport Management, Elsevier, vol. 5(1), pages 53-59.
When requesting a correction, please mention this item's handle: RePEc:wsi:jicepx:v:01:y:2010:i:01:p:105-120. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)
If references are entirely missing, you can add them using this form.