The impacts of airport activities on regional economy: an empirical analysis of New Zealand
This study investigates the impacts of airport activities on regional economies using annual data on 22 regions and airports in New Zealand from 1996 to 2016. Studying all regions of an island country avoids the sample selection bias, and reduces the likelihood of incorrectly capturing the effects of improvements in other transport modes. The use of panel data over an extensive period of time also contributes to a robust identification procedure. In addition to the fixed effects estimation that has been frequently used in the literature, the system generalized methods of moments (GMM) approach and the dynamic common correlated effects (CCE) estimator are applied to account for cross-sectional dependence, cross-regional heterogeneity, and feedback effects. We find that airport activities have a statistically and economically significant impact on a region’s economy. This finding is robust across fixed effects, GMM, and CCE estimations, although more significant effects are identified by the less restrictive CCE approach. Our study suggests a positive effect of aviation on regional economies, and supports local/regional policies promoting aviation activities.
- Record URL:
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Corporate Authors:
University of Sydney. Institute of Transport and Logistics Studies
University of Sydney, 144 Burren Street, Newtown, New South Wales, 2042, Australia
Sydney, New South Wales -
Authors:
- Fu, X
- Tsui, K
- Sampaio, B
- Tan, D T
- Publication Date: 2018-4
Media Info
- Pagination: 19p
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Serial:
- Issue Number: ITLS-WP-18-08
Subject/Index Terms
- TRT Terms: Airports; Economic analysis; Economics; Methodology; Policy; Regions
- Geographic Terms: New Zealand
- ATRI Terms: Airport; Economic analysis; Methodology; Policy; Region; Transport economics
- ITRD Terms: 263: Economics of transport; LOCAL AUTHORITY
- Subject Areas: Aviation; Economics; Policy; I10: Economics and Administration;
Filing Info
- Accession Number: 01666223
- Record Type: Publication
- Source Agency: ARRB
- Files: ITRD, ATRI
- Created Date: Apr 17 2018 12:30PM