Evolution of the Airport Industry and Regional Growth in the Pacific Alliance Member Countries

Wolfgang Dupeyrat Luque and Chunyan Yu

Journal of Air Transport Management, 2025, vol. 127, issue C

Abstract: This study examines the relationship between airports and regional economic growth, and explores the extent to which airport privatization and commercialization have influenced air traffic growth within Pacific Alliance countries. Utilizing a comprehensive dataset comprising 86 airports across Chile, Colombia, Mexico, and Peru from 2006 to 2019, we employed Granger causality tests, Vector Autoregression (VAR), and Instrumental Variables (IV) with Two-Stage Least Squares (2SLS) models. Our findings reveal that privatization and commercialization significantly enhance airport traffic, which, in turn, promotes regional economic growth. Furthermore, we identified a bidirectional causal relationship between airport traffic and economic growth in Colombia, Mexico, and Peru. However, no evidence of such causality was observed in Chile.

Keywords: Pacific Alliance airports; Granger causality; Vector Autoregression; Instrumental Variables and 2SLS (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:127:y:2025:i:c:s0969699725000742

DOI: 10.1016/j.jairtraman.2025.102811

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