Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26727
Authors: 
Piermartini, Roberta
Rousová, Linda
Year of Publication: 
2008
Series/Report no.: 
WTO Staff Working Paper ERSD-2008-06
Abstract: 
We find robust evidence of a positive and significant relationship between the volumes of traffic and the degree of liberalization of the aviation market. An increase in the degree of liberalization from the 25th percentile to the 75th percentile increases traffic volumes between countries linked by a direct air service by approximately 30 per cent. In particular, the removal of restrictions on the determination of prices and capacity, cabotage rights and the possibility for airlines other than the flag carrier of the foreign country to operate a service are found to be the most traffic-enhancing provisions of air service agreements. The results are robust to the use of different measures of the degree of liberalization as well as the use of different estimation techniques.
Subjects: 
Bilateral air service agreements
air transport
air service trade liberalization
gravity model
passenger traffic
open skies agreements
JEL: 
F15
L93
Document Type: 
Working Paper

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