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The Effects of Dominant Airlines on Open Skies Agreements

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  • Roberto Alvarez
  • Aldo Gonzalez
  • Manuel Garcia

Abstract

We investigate the determinants of open skies agreements among Latin-American countries, focusing on the impact of having a dominant airline on the willingness of countries to sign agreements with others. We find that, overall, the likelihood of signing agreements increases with trade volume, passenger traffic, and distance. In relation to our main question, we find that a having a dominant airline decreases the probability that third countries concede open skies agreement.

Suggested Citation

  • Roberto Alvarez & Aldo Gonzalez & Manuel Garcia, 2017. "The Effects of Dominant Airlines on Open Skies Agreements," Working Papers wp443, University of Chile, Department of Economics.
  • Handle: RePEc:udc:wpaper:wp443
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    References listed on IDEAS

    as
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    4. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
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    6. Scott L. Baier & Jeffrey H. Bergstrand & Ronald Mariutto, 2014. "Economic Determinants of Free Trade Agreements Revisited: Distinguishing Sources of Interdependence," Review of International Economics, Wiley Blackwell, vol. 22(1), pages 31-58, February.
    7. Piermartini, Roberta & Rousová, Linda, 2008. "Liberalization of air transport services and passenger traffic," WTO Staff Working Papers ERSD-2008-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    8. Steven A. Morrison, 2001. "Actual, Adjacent, and Potential Competition Estimating the Full Effect of Southwest Airlines," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 239-256, May.
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