Fewer Airplanes means less Trade

Moins d'avions, c'est moins de commerce

Ariell Reshef (), Diego Botero Garcia and Camilo Umana Dajud ()
Additional contact information
Camilo Umana Dajud: ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique

SciencePo Working papers Main from HAL

Abstract: With the onset of the Covid-19 pandemic, international air traffic collapsed. For some European countries, air transport is the main mode of transport for their exports. Despite its higher cost, air transport is also a widely used mode of transport for products with a high value relative to their weight, such as precious stones, electronic components and pharmaceuticals. The same is true for intermediate products that are at the heart of global value chains. Yet, the more air links countries have with each other, the more they trade: the share of overall trade between two countries that have more than 103 air links between them is 9% higher than that of countries that share no direct air links; and for trade that is transported by air alone this figure rises to 15%. In the case of goods that are not shipped by air, the effect is also substantial (about 8%) because business travel supports trade. If travel restrictions continue, or if the air transport sector is included in international commitments to reduce greenhouse-gas emissions, air transport could remain disrupted and, with it, international trade.

Date: 2021
Note: View the original document on HAL open archive server: https://hal.science/hal-03958807
References: Add references at CitEc
Citations:

Published in 2021

Downloads: (external link)
https://hal.science/hal-03958807/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03958807

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().