Abstract
Our research examines the role of airports in regional development. Specifically, we examine two things: (1) the factors associated with whether or not a metro will have an airport, and (2) the effect of airport activities on regional economic development. Based on multiple regression analysis for U.S. metros, our research generates four key findings. First, airports are more likely to be located in larger metros with higher shares of cultural workers and warmer winters. Second, airports add significantly to regional development measured as economic output per capita. Third, the effect of airports on regional development occurs through two channels—their capacity to move both people and cargo, with the former being somewhat more important. Fourth, the impact of airports on regional development varies with their size and scale.
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Notes
We acknowledge that there may be that bohemians are drawn to places where airports are already located. However, while this would decrease the bohemians’ demand to fly out, this may instead increase the “flying in” effect, due to higher shares of entertainment and tourism.
The results from the logistic regression procedures are available in the “Appendix”, together with the mean value difference t-test results.
Work by Berry and Glaeser (2005) suggests a strong path dependency for shares of highly educated in U.S. metros. The authors find that cities with higher shares of highly educated also experienced relatively higher shares of this group already in the 1980s.
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Taylor Brydges provided research assistance.
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Appendix: Propensity score matching results
Appendix: Propensity score matching results
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Florida, R., Mellander, C. & Holgersson, T. Up in the air: the role of airports for regional economic development. Ann Reg Sci 54, 197–214 (2015). https://doi.org/10.1007/s00168-014-0651-z
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DOI: https://doi.org/10.1007/s00168-014-0651-z