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Do non-stop flights boost exports?

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  • Marco Alderighi

    (University of Valle d'Aosta and Bocconi University)

  • Alberto Gaggero

    (Department of Economics and Management, University of Pavia)

Abstract

We study empirically the role of air service in boosting exports. We focus on the link between non-stop flights and outgoing trade of the Italian manufacturing sector in Europe using a panel of 12,000 half- yearly observations ranging from 1998 to 2010. The analysis shows that the supply of non-stop flights provided by Full-Service Carriers (FSCs) has a positive impact on the exports of Italian regions, whilst no significant evidence of this is found for Low-Cost Carriers. After taking the endogeneity of flight frequency into account, the estimates indicate that the elasticity of exports to FSC non-stop flights is about 10 percent.

Suggested Citation

  • Marco Alderighi & Alberto Gaggero, 2012. "Do non-stop flights boost exports?," DEM Working Papers Series 012, University of Pavia, Department of Economics and Management.
  • Handle: RePEc:pav:demwpp:012
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    More about this item

    Keywords

    airlines; export; full-service carriers; low-cost carriers; manufacturing.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F10 - International Economics - - Trade - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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