Determinants of Air Passenger Flows in China and Gravity Model: Deregulation, LCCs, and High-speed Rail

Yahua Zhang and Anming Zhang

Journal of Transport Economics and Policy, 2016, vol. 50, issue 3, 287--303

Abstract: This paper reviews the development of China's air transport policy and examines the determinants of Chinese city-pair air passenger flows using a gravity model approach accounting for the effects of multilateral resistance. We find significant positive impacts of both the continuing liberalisation of this industry and the low-cost carriers (LCCs) in promoting bilateral traffic flows in China's domestic aviation market. Local industry structures and high-speed rail (HSR) services also influence the volume of passenger movement. The challenge from HSR will be greater in the near future after the fast-expanding HSR network has connected most of the major cities.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:tpe:jtecpo:2016:50:3:287--303

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