IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v110y2021icp368-378.html
   My bibliography  Save this article

Measuring the impact of ASEAN Open Skies on international air traffic movements from and to Southeast Asian Cities

Author

Listed:
  • Bilotkach, Volodymyr
  • Caro-Burnett, Johann
  • Khan, Ghulam Dastgir
  • Sembiring, Benny Lala
  • Yoshida, Yuichiro

Abstract

We study the effects of the Open Skies Agreement (OSA) of the Association of Southeast Asian Nations (ASEAN). This treaty was meant to promote competition among member-state carriers, leading to an increase in the volume of passengers. In this study, we estimate the impact of the OSA on the number of international air passengers and on the number of operating airlines; moreover, we disaggregate these effects into effects on low-cost carriers (LCCs) and full-service carriers (FSCs). Using data from the Official Airline Guide, we estimate the impact of the OSA by three methods: fixed effects, difference-in-differences with propensity score matching, and distance matching. Our results show that OSA has boosted the recent surge of all LCCs and FSCs to and from the ASEAN region. However, the OSA has decreased the number of FSC flights within the region, with a resulting negative net effect on the number of airlines.

Suggested Citation

  • Bilotkach, Volodymyr & Caro-Burnett, Johann & Khan, Ghulam Dastgir & Sembiring, Benny Lala & Yoshida, Yuichiro, 2021. "Measuring the impact of ASEAN Open Skies on international air traffic movements from and to Southeast Asian Cities," Transport Policy, Elsevier, vol. 110(C), pages 368-378.
    • Handle: RePEc:eee:trapol:v:110:y:2021:i:c:p:368-378
    DOI: 10.1016/j.tranpol.2021.06.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X21001761
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2021.06.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roberta Piermartini & Linda Rousov?, 2013. "The Sky Is Not Flat: How Discriminatory Is the Access to International Air Services?," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 287-319, August.
    2. 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.
    3. Isabelle Laplace & Chantal Roucolle, 2016. "Deregulation of the ASEAN air Transport Market: Measure of Impacts of Airport Activities on Local Economies," Post-Print hal-02095935, HAL.
    4. Abate, Megersa & Christidis, Panayotis, 2020. "The impact of air transport market liberalization: Evidence from EU's external aviation policy," Economics of Transportation, Elsevier, vol. 22(C).
    5. Forsyth, Peter & King, John & Lyn Rodolfo, Cherry, 2006. "Open Skies in ASEAN," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 143-152.
    6. Lei, Zheng & Yu, Man & Chen, Ruowei & O'Connell, John F., 2016. "Liberalization of China–US air transport market: Assessing the impacts of the 2004 and 2007 protocols," Journal of Transport Geography, Elsevier, vol. 50(C), pages 24-32.
    7. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(3), pages 199-236, July.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    9. Hanaoka, Shinya & Takebayashi, Mikio & Ishikura, Tomoki & Saraswati, Batari, 2014. "Low-cost carriers versus full service carriers in ASEAN: The impact of liberalization policy on competition," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 96-105.
    10. Oum, Tae Hoon & Wang, Kun & Yan, Jia, 2019. "Measuring the effects of open skies agreements on bilateral passenger flow and service export and import trades," Transport Policy, Elsevier, vol. 74(C), pages 1-14.
    11. Clifford Winston & Jia Yan, 2015. "Open Skies: Estimating Travelers' Benefits from Free Trade in Airline Services," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 370-414, May.
    12. King, Gary & Nielsen, Richard, 2019. "Why Propensity Scores Should Not Be Used for Matching," Political Analysis, Cambridge University Press, vol. 27(4), pages 435-454, October.
    13. Bilotkach, Volodymyr & Kawata, Keisuke & Kim, Tae Seung & Park, Jaehong & Purwandono, Putut & Yoshida, Yuichiro, 2019. "Quantifying the impact of low-cost carriers on international air passenger movements to and from major airports in Asia," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 28-57.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Atabekov, Mirlan & Bilotkach, Volodymyr & Kawata, Keisuke & Khan, Ghulam Dastgir & Miyoshi, Chikage & Sakamoto, Miyu & Yoshida, Yuichiro, 2024. "Double-edged impacts of carbon footprint information on international air travel demand," Journal of Air Transport Management, Elsevier, vol. 117(C).
    2. Zhang, Linfeng & Hou, Meng & Liu, Yichen & Wang, Kun & Yang, Hangjun, 2022. "Measuring Beijing's international air connectivity and suggestions for improvement post COVID-19," Transport Policy, Elsevier, vol. 116(C), pages 132-143.
    3. Wang, Weicheng & Wu, Xiangru & Fu, Xiaowen & Wang, Kun, 2024. "Airline competition in Indonesian domestic market: Airline-within-airline strategies and impact of the COVID-19 pandemic," Transport Policy, Elsevier, vol. 156(C), pages 1-12.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cristea,Anca Diana & Abate,Megersa Abera & Benitez,Daniel Alberto, 2022. "Toward a Competitive Air Transport Market in Africa : The Role of Bilateral AirService Agreements Liberalization," Policy Research Working Paper Series 10204, The World Bank.
    2. Tchouamou Njoya, Eric & Buhari Isah, Aliyu, 2023. "Assessing the economic impact of the single African air transport market: The case of Tanzania," Research in Transportation Economics, Elsevier, vol. 101(C).
    3. Demet Yilmazkuday & Hakan Yilmazkuday, 2017. "The role of direct flights in trade costs," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 249-270, May.
    4. Anca D. Cristea & Russell Hillberry & Aaditya Mattoo, 2015. "Open Skies over the Middle East," The World Economy, Wiley Blackwell, vol. 38(11), pages 1650-1681, November.
    5. Kiyoyasu Tanaka, 2019. "Do international flights promote FDI? The role of face‐to‐face communication," Review of International Economics, Wiley Blackwell, vol. 27(5), pages 1609-1632, November.
    6. Zhang, Yi & Zheng, Xingwu & Lu, Wei, 2018. "Measuring the openness of Chinese international air transport policy," Transport Policy, Elsevier, vol. 72(C), pages 208-217.
    7. Oum, Tae Hoon & Wu, Xiangru & Wang, Kun, 2024. "Impact of air connectivity on bilateral service export and import trade: The case of China," Transport Policy, Elsevier, vol. 148(C), pages 219-233.
    8. Fan Xia, 2023. "Common institutional ownership and mergers and acquisitions outcomes," Review of Quantitative Finance and Accounting, Springer, vol. 60(4), pages 1429-1449, May.
    9. Abate, Megersa & Christidis, Panayotis, 2020. "The impact of air transport market liberalization: Evidence from EU's external aviation policy," Economics of Transportation, Elsevier, vol. 22(C).
    10. Zhang, Linfeng & Hou, Meng & Liu, Yichen & Wang, Kun & Yang, Hangjun, 2022. "Measuring Beijing's international air connectivity and suggestions for improvement post COVID-19," Transport Policy, Elsevier, vol. 116(C), pages 132-143.
    11. World Bank, 2009. "The Service Revolution in South Asia," World Bank Publications - Reports 19332, The World Bank Group.
    12. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2024. "Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists," IFRO Working Paper 2024/03, University of Copenhagen, Department of Food and Resource Economics.
    13. Baron, Opher & Callen, Jeffrey L. & Segal, Dan, 2023. "Does the bullwhip matter economically? A cross-sectional firm-level analysis," International Journal of Production Economics, Elsevier, vol. 259(C).
    14. N'dri, Lasme Mathieu & Kakinaka, Makoto, 2020. "Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso," Telecommunications Policy, Elsevier, vol. 44(3).
    15. Matilde Cappelletti & Leonardo M. Giuffrida, 2024. "Targeted Bidders in Government Tenders," CESifo Working Paper Series 11142, CESifo.
    16. Eric Tchouamou Njoya & Panayotis Christidis, 2017. "Potential impacts of liberalisation of the EU-Africa aviation market," JRC Research Reports JRC106855, Joint Research Centre.
    17. Sakos, Grayson & Cerulli, Giovanni & Garbero, Alessandra, 2021. "Beyond the ATE: Idiosyncratic Effect Estimation to Uncover Distributional Impacts Results from 17 Impact Evaluations," 2021 Annual Meeting, August 1-3, Austin, Texas 314017, Agricultural and Applied Economics Association.
    18. Gavious, Ilanit & Livne, Gilad & Chen, Ester, 2022. "Does tax avoidance increase or decrease when tax enforcement is stronger? Evidence using CSR heterogeneity perspective," International Review of Financial Analysis, Elsevier, vol. 84(C).
    19. Ragni, Alessandra & Ippolito, Daniel & Masci, Chiara, 2024. "Assessing the impact of hybrid teaching on students’ academic performance via multilevel propensity score-based techniques," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    20. Abate, Megersa & Christidis, Panayotis & Purwanto, Alloysius Joko, 2020. "Government support to airlines in the aftermath of the COVID-19 pandemic," Journal of Air Transport Management, Elsevier, vol. 89(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:110:y:2021:i:c:p:368-378. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.