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Airfreight Transport and Economic Development: An Examination of Causality

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  • Kenneth Button
  • Junyang Yuan

Abstract

The paper examines the potential role that airfreight transport in the US can play in stimulating local and regional economic development. The analysis examines trends in employment and income for metropolitan statistical areas that make use of airfreight services. The focus is on causality, and not on simple correlation, and uses econometric analysis rather than simpler economic multiplier approaches. Granger causality testing based on panel data covering 35 airport and 32 metropolitan statistical areas in the US from 1990 to 2009 indicates that airfreight transport was a positive driver for local economic development. The conclusions focus on the strengths but also the weaknesses of the methodology for assessing causality.

Suggested Citation

  • Kenneth Button & Junyang Yuan, 2013. "Airfreight Transport and Economic Development: An Examination of Causality," Urban Studies, Urban Studies Journal Limited, vol. 50(2), pages 329-340, February.
    • Handle: RePEc:sae:urbstu:v:50:y:2013:i:2:p:329-340
    DOI: 10.1177/0042098012446999
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    References listed on IDEAS

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    4. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    5. Hian Teck HOON & Frank S T Hsiao & Mei-Chu Wang Hsiao, 2020. "FDI, Exports, and GDP in East and Southeast Asia — Panel Data versus Time-Series Causality Analyses," World Scientific Book Chapters, in: Development Strategies of Open Economies Cases from Emerging East and Southeast Asia, chapter 4, pages 81-129, World Scientific Publishing Co. Pte. Ltd..
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    7. Clifford Winston, 1991. "Efficient Transportation Infrastructure Policy," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 113-127, Winter.
    8. Valerie A. Ramey, 2011. "Can Government Purchases Stimulate the Economy?," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 673-685, September.
    9. Kenneth Button, 2011. "The Economist’s Perspective on Regional Endogenous Development," Chapters, in: Robert Stimson & Roger R. Stough & Peter Nijkamp (ed.), Endogenous Regional Development, chapter 2, Edward Elgar Publishing.
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