Airports and the Production of Goods and Services

Nicholas Sheard ()
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Nicholas Sheard: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden

No 2012:7, Research Papers in Economics from Stockholm University, Department of Economics

Abstract: This paper estimates the effects of airport infrastructure on local sectoral employment, using data from the United States. To address the potential endogeneity in the determination of airport locations and sizes, the 1944 National Airport Plan is used to instrument for the current distribution of airports. The Plan had a strong effect on subsequent airport construction but appears to have been unrelated to other factors for current sectoral employment. Airport size is found to have a positive effect on local employment in tradable services, with an elasticity of approximately 0.15, but no measurable effect on non-tradable services. There is a negative effect on manufacturing. The effects are relevant to the evaluation of airport construction or improvement projects that aim to attract firms by making travel to and from the local area more convenient.

Keywords: Air transport; services trade; infrastructure (search for similar items in EconPapers)
JEL-codes: F14 H54 R41 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2012-07-05, Revised 2013-01-17
New Economics Papers: this item is included in nep-tre, nep-tur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www2.ne.su.se/paper/wp12_07_revised.pdf (application/pdf)

Related works:
Journal Article: Airports and urban sectoral employment (2014)
Working Paper: The effect of air transport on the production of goods and services (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sunrpe:2012_0007

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