The economic impact of aviation: A review on the role of market access

Abstract

In recent decades, advancements in telecommunications and (air) transportation have driven globalisation processes. Consequently, policymakers and scholars view access to transportation as an essential prerequisite for economic development. For aviation, existing empirical studies have attempted to estimate the wider economic impacts from regional, country-level and global perspectives. However, no theoretical framework has yet been presented that comprehensively captures the full set of mechanisms by which aviation can contribute to economic development. Such a framework would cover both positive and negative regional impacts, as well as the mechanisms and spatial distribution behind them. In this paper, we use a New Economic Geography approach to comprehensively describe the impact mechanisms. We then apply this theoretical framework to an empirical study of metrics of air transport supply, which policymakers and researchers can use to assess how well airports and their surrounding regions are connected by means of the air transport network. The results of our analysis can inform scholars and policymakers on how air transport can shape economic geography and the productivity of economic systems. The results might also provide guidance for future empirical work on the wider economic impacts of air transportation.