Cities in Flight: The Role of Airports in Urban Development

Miren Lafourcade and Nicholas Sheard

No 21380, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Airports are pivotal urban hubs and major clusters of economic activity, serving as critical transport nodes connecting cities to global networks. Beyond their scale and scope, airports shape the urban landscape and often stand as symbols of civic pride and local development aspiration, while simultaneously imposing substantial disamenities on populations living nearby. This paper explores the multifaceted relationship between airports, urban growth, and spatial inequalities both across and within cities, with a focus on cutting-edge research addressing the identification challenges in isolating airports’ causal effects on cities. Particular attention is devoted to underexplored economic dimensions, such as the transformative role of low-cost carriers and air tourism in driving urban development in small cities.

Keywords: Tourism (search for similar items in EconPapers)
JEL-codes: H54 L93 O18 R40 (search for similar items in EconPapers)
Date: 2026-04
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