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Economic Impacts of Public Air Transport Investment: A Case Study of Egypt

Author

Listed:
  • Eric Tchouamou Njoya

    (Department of Logistics, Marketing, Hospitality and Analytics, The Business School, University of Huddersfield, Queensgate, Huddersfield HD1 3DH, UK)

  • Ahmad Muhammad Ragab

    (Tourism Studies Department, Faculty of Tourism and Hotels, Minia University, Minia 61519, Egypt)

Abstract

This paper applies an input–output (I-O) approach and a dynamic computable general equilibrium (CGE) model to examine the economy-wide short- and long-run impacts of an increase in public capital investment in air transport infrastructure. The results of the I-O analysis reveal that air transport has above-average backward linkages with other sectors in the economy, with mining being the most intensive industry in intermediate input demand for air transport. The results of the CGE simulation show that at the macroeconomic level, expanding public air transport stock induces modest growth in GDP, employment, income, consumption, private investment, and trade. The findings show that the estimated impact of air transport investment is lower than estimated in studies on the “multiplier effect” of the investment using partial equilibrium techniques.

Suggested Citation

  • Eric Tchouamou Njoya & Ahmad Muhammad Ragab, 2022. "Economic Impacts of Public Air Transport Investment: A Case Study of Egypt," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2651-:d:757719
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    References listed on IDEAS

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