IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/225046.html
   My bibliography  Save this article

Ready for take-off? The economic effects of regional airport expansions in Germany

Author

Listed:
  • Breidenbach, Philipp

Abstract

Airports are an important factor of regional connectivity. Following the literature, a sufficiently dense airport network is an important determinant for growth. However, regional airports in Germany exhibit financial losses and depend on subsidies. This paper analyses the potential spillover effects of airports on the surrounding economies that may justify those subsidies by exploiting the deregulation of the European aviation market as a quasi-natural experiment. Subsequent airport expansions are evaluated in a difference-in-differences framework, making use of the exogenous shift in airport demand for regional airports due to the deregulation. Results show no evidence for spillover effects of Germany's regional airports.

Suggested Citation

  • Breidenbach, Philipp, 2020. "Ready for take-off? The economic effects of regional airport expansions in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(8), pages 1084-1097.
    • Handle: RePEc:zbw:espost:225046
    DOI: 10.1080/00343404.2019.1659948
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/225046/1/Ready-for-take-off.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00343404.2019.1659948?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Button, Kenneth & Taylor, Samantha, 2000. "International air transportation and economic development," Journal of Air Transport Management, Elsevier, vol. 6(4), pages 209-222.
    2. Richard Florida & Charlotta Mellander & Thomas Holgersson, 2015. "Up in the air: the role of airports for regional economic development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 197-214, January.
    3. Filipe Campante & David Yanagizawa-Drott, 2018. "Long-Range Growth: Economic Development in the Global Network of Air Links," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1395-1458.
    4. Jeffrey P. Cohen & Cletus C. Coughlin, 2008. "Spatial Hedonic Models Of Airport Noise, Proximity, And Housing Prices," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 859-878, December.
    5. McMillen, Daniel P., 2004. "Airport expansions and property values: the case of Chicago O'Hare Airport," Journal of Urban Economics, Elsevier, vol. 55(3), pages 627-640, May.
    6. Pope, Jaren C., 2008. "Buyer information and the hedonic: The impact of a seller disclosure on the implicit price for airport noise," Journal of Urban Economics, Elsevier, vol. 63(2), pages 498-516, March.
    7. Dobruszkes, Frédéric & Lennert, Moritz & Van Hamme, Gilles, 2011. "An analysis of the determinants of air traffic volume for European metropolitan areas," Journal of Transport Geography, Elsevier, vol. 19(4), pages 755-762.
    8. repec:zbw:rwirep:0181 is not listed on IDEAS
    9. Sheard, Nicholas, 2014. "Airports and urban sectoral employment," Journal of Urban Economics, Elsevier, vol. 80(C), pages 133-152.
    10. Volodymyr Bilotkach, 2015. "Are airports engines of economic development? A dynamic panel data approach," Urban Studies, Urban Studies Journal Limited, vol. 52(9), pages 1577-1593, July.
    11. Sascha O. Becker & Katrin Boeckh & Christa Hainz & Ludger Woessmann, 2016. "The Empire Is Dead, Long Live the Empire! Long‐Run Persistence of Trust and Corruption in the Bureaucracy," Economic Journal, Royal Economic Society, vol. 126(590), pages 40-74, February.
    12. 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.
    13. Kirsi Mukkala & Hannu Tervo, 2013. "Air Transportation and Regional Growth: Which Way Does the Causality Run?," Environment and Planning A, , vol. 45(6), pages 1508-1520, June.
    14. Barrett, Sean D, 2000. "Airport competition in the deregulated European aviation market," Journal of Air Transport Management, Elsevier, vol. 6(1), pages 13-27.
    15. Sheard, Nicholas, 2014. "Airports and urban sectoral employment," Journal of Urban Economics, Elsevier, vol. 80(C), pages 133-152.
    16. Alfredo Paloyo & Colin Vance & Matthias Vorell, 2010. "The Regional Economic Effects Of Military Base Realignments And Closures In Germany," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(5-6), pages 567-579.
    17. Lieshout, Rogier, 2012. "Measuring the size of an airport’s catchment area," Journal of Transport Geography, Elsevier, vol. 25(C), pages 27-34.
    18. Blonigen, Bruce A. & Cristea, Anca D., 2015. "Air service and urban growth: Evidence from a quasi-natural policy experiment," Journal of Urban Economics, Elsevier, vol. 86(C), pages 128-146.
    19. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    20. Giovanni S. F. Bruno, 2005. "Estimation and inference in dynamic unbalanced panel-data models with a small number of individuals," Stata Journal, StataCorp LP, vol. 5(4), pages 473-500, December.
    21. Brugnoli, Alberto & Dal Bianco, Antonio & Martini, Gianmaria & Scotti, Davide, 2018. "The impact of air transportation on trade flows: A natural experiment on causality applied to Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 95-107.
    22. Frédéric Dobruszkes & Moritz Lennert & Gilles Van Hamme, 2011. "An analysis of the determinants of air traffic volume for European metropolitan areas," ULB Institutional Repository 2013/95858, ULB -- Universite Libre de Bruxelles.
    23. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    24. Stephen J. Appold, 2015. "Airport cities and metropolitan labor markets: an extension and response to Cidell," Journal of Economic Geography, Oxford University Press, vol. 15(6), pages 1145-1168.
    25. Cohen, Jeffrey P. & Morrison Paul, Catherine J., 2003. "Airport infrastructure spillovers in a network system," Journal of Urban Economics, Elsevier, vol. 54(3), pages 459-473, November.
    26. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    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. Bergantino, Angela Stefania & Intini, Mario & Volta, Nicola, 2021. "The spatial dimension of competition among airports at the worldwide level: a spatial stochastic frontier analysis," European Journal of Operational Research, Elsevier, vol. 295(1), pages 118-130.
    2. Pablo Brichetti, Juan & Sánchez González, Santiago & Giraldez, Francisca & Serebrisky, Tomás, 2024. "The airport access gap in Latin America and the Caribbean," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    3. Pot, Felix Johan & Koster, Sierdjan, 2022. "Small airports: Runways to regional economic growth?," Journal of Transport Geography, Elsevier, vol. 98(C).
    4. Andrea Ascani & Alessandra Faggian & Sandro Montresor & Alessandro Palma, 2021. "Moving (within and across) spatial labour markets in times of COVID-19: evidence from Facebook mobility data on Italian labour market areas," Discussion Paper series in Regional Science & Economic Geography 2021-01, Gran Sasso Science Institute, Social Sciences, revised Jan 2021.
    5. Ascani, Andrea & Faggian, Alessandra & Montresor, Sandro & Palma, Alessandro, 2021. "Mobility in times of pandemics: Evidence on the spread of COVID19 in Italy's labour market areas," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 444-454.

    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. Lenaerts, Bert & Allroggen, Florian & Malina, Robert, 2021. "The economic impact of aviation: A review on the role of market access," Journal of Air Transport Management, Elsevier, vol. 91(C).
    2. Xiaowen Fu & Kan Wai Hong Tsui & Breno Sampaio & David Tan, 2021. "Do airport activities affect regional economies? Regional analysis of New Zealand’s airport system," Regional Studies, Taylor & Francis Journals, vol. 55(4), pages 707-722, April.
    3. Philipp Breidenbach, 2015. "Expansions of Regional Airports and their Effect on the Local Economy," ERSA conference papers ersa15p1196, European Regional Science Association.
    4. Chen, Xin & Xuan, Chao & Qiu, Rui, 2021. "Understanding spatial spillover effects of airports on economic development: New evidence from China’s hub airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 143(C), pages 48-60.
    5. Sobieralski, Joseph B., 2021. "Transportation infrastructure and employment: Are all investments created equal?," Research in Transportation Economics, Elsevier, vol. 88(C).
    6. Pot, Felix Johan & Koster, Sierdjan, 2022. "Small airports: Runways to regional economic growth?," Journal of Transport Geography, Elsevier, vol. 98(C).
    7. Wai Hong Kan Tsui & David Tat Wei Tan & Song Shi, 2017. "Impacts of airport traffic volumes on house prices of New Zealand’s major regions: A panel data approach," Urban Studies, Urban Studies Journal Limited, vol. 54(12), pages 2800-2817, September.
    8. Tu Anh Trinh & Ducksu Seo & Unchong Kim & Thi Nhu Quynh Phan & Thi Hai Hang Nguyen, 2022. "Air Transport Centrality as a Driver of Sustainable Regional Growth: A Case of Vietnam," Sustainability, MDPI, vol. 14(15), pages 1-14, August.
    9. Hu, Yi & Xiao, Jin & Deng, Ying & Xiao, Yi & Wang, Shouyang, 2015. "Domestic air passenger traffic and economic growth in China: Evidence from heterogeneous panel models," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 95-100.
    10. Murakami, Jin & Matsui, Yurika & Kato, Hironori, 2016. "Airport rail links and economic productivity: Evidence from 82 cities with the world’s 100 busiest airports," Transport Policy, Elsevier, vol. 52(C), pages 89-99.
    11. Doerr, Luisa & Dorn, Florian & Gaebler, Stefanie & Potrafke, Niklas, 2020. "How new airport infrastructure promotes tourism: evidence from a synthetic control approach in German regions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(10), pages 1402-1412.
    12. Nicholas Sheard, 2021. "The network of US airports and its effects on employment," Journal of Regional Science, Wiley Blackwell, vol. 61(3), pages 623-648, June.
    13. Hussain, Muhammad Noshab, 2023. "Evaluating the impact of air transportation, railway transportation, and trade openness on inbound and outbound tourism in BRI countries," Journal of Air Transport Management, Elsevier, vol. 106(C).
    14. Carbo, Jose M. & Graham, Daniel J., 2020. "Quantifying the impacts of air transportation on economic productivity: a quasi-experimental causal analysis," Economics of Transportation, Elsevier, vol. 24(C).
    15. Nicholas Sheard, 2019. "Airport Size and Urban Growth," Economica, London School of Economics and Political Science, vol. 86(342), pages 300-335, April.
    16. Pi, Jianhua & Li, Dong & Liu, Xingjian & Freestone, Robert, 2021. "The spatial distribution of employment around major Chinese airports," Journal of Transport Geography, Elsevier, vol. 91(C).
    17. McGraw, Marquise J., 2020. "The role of airports in city employment growth, 1950–2010," Journal of Urban Economics, Elsevier, vol. 116(C).
    18. Tveter, Eivind, 2017. "The effect of airports on regional development: Evidence from the construction of regional airports in Norway," Research in Transportation Economics, Elsevier, vol. 63(C), pages 50-58.
    19. Laila AitBihiOuali & Jose M. Carbo & Daniel J. Graham, 2020. "Do changes in air transportation affect productivity? A cross‐country panel approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 493-505, June.
    20. Xiao Ke & Yuanke Yan, 2021. "Can proactive fiscal policy achieve the goal of “Beyond Keynesianism”?," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 1078-1103, May.

    More about this item

    Keywords

    infrastructure investment; regional growth; airport effects;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    Statistics

    Access and download statistics

    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:zbw:espost:225046. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    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.