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The effect of airports on regional development: Evidence from the construction of regional airports in Norway

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  • Tveter, Eivind
Abstract
This paper estimates the effect of airports on regional development using the substantial increase of airports in the 1970s in Norway as the source of variation. The effects are estimated using a difference-in-difference design by comparing municipalities with a shorter distance to the nearest airport (treated) to three sets of control municipalities. As regional impacts, the paper considers population and employment at the municipality level. The results demonstrate a positive but not significant effect on population and employment. The point estimates indicate that the population in municipalities near the constructed airports increased by 5% from 1970 to 1980, but the overall imprecision of the estimates makes it impossible to reject the hypothesis that the airports had no regional impacts.

Suggested Citation

  • Tveter, Eivind, 2017. "The effect of airports on regional development: Evidence from the construction of regional airports in Norway," Research in Transportation Economics, Elsevier, vol. 63(C), pages 50-58.
    • Handle: RePEc:eee:retrec:v:63:y:2017:i:c:p:50-58
    DOI: 10.1016/j.retrec.2017.07.001
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    References listed on IDEAS

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    Cited by:

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    2. Stephen Gibbons & Wenjie Wu, 2020. "Airports, access and local economic performance: evidence from China [Are Chinese cities too small?]," Journal of Economic Geography, Oxford University Press, vol. 20(4), pages 903-937.
    3. Pot, Felix Johan & Koster, Sierdjan, 2022. "Small airports: Runways to regional economic growth?," Journal of Transport Geography, Elsevier, vol. 98(C).
    4. Bingjie Niu & Ping Yin & Pengxia Shen, 2023. "Industrial Spatio-Temporal Distribution of High-Speed Rail Station Area from the Accommodation Facilities Perspective: A Multi-City Comparison," Land, MDPI, vol. 12(2), pages 1-16, January.
    5. Aguirre, Julio & Mateu, Pedro & Pantoja, Chrissie, 2019. "Granting airport concessions for regional development: Evidence from Peru," Transport Policy, Elsevier, vol. 74(C), pages 138-152.
    6. Chao Gao & Dequan Yao & Jiayu Fang & Zhengchu He, 2022. "Analysis of the Relationships between Financial Development and Sustainable Economic Growth: Evidence from Chinese Cities," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    7. Luisa Doerr & Florian Dorn & Stefanie Gaebler & Niklas Potrafke, 2020. "How new airport infrastructure promotes tourism: evidence from a synthetic control approach in German regions," Regional Studies, Taylor & Francis Journals, vol. 54(10), pages 1402-1412, October.
    8. Luisa Alamá-Sabater & Miguel Ángel Márquez & Emili Tortosa-Ausina & Júlia Cravo, 2022. "Are semi-urban spillovers the answer to left-behind places in rural Europe? The case of the Portuguese municipalities," Working Papers 2022/14, Economics Department, Universitat Jaume I, Castellón (Spain).
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    12. Sobieralski, Joseph B., 2021. "Transportation infrastructure and employment: Are all investments created equal?," Research in Transportation Economics, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Air transport; Regional development; Regional airports; Transport infrastructure; Difference-in-difference; Wider economic impacts;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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