Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence
The relevance of transport costs has increased as liberalization continues to reduce artificial barriers to trade. Countries need to adopt policies to get closer to global markets. Can improvements in infrastructure and regulation reduce transport...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/07/4984006/infrastructure-competition-regimes-air-transport-costs-cross-country-evidence http://hdl.handle.net/10986/14179 |
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okr-10986-141792021-04-23T14:03:21Z Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence Micco, Alejandro Serebrisky, Tomás INFRASTRUCTURE AIR TRANSPORT TRANSPORT COSTS LIBERALIZATION REGULATORY FRAMEWORK GLOBAL MARKETS IMPORTS REGULATIONS COMPETITION TRANSPORT INDUSTRY AIM AIR CARGO AIR CARRIERS AIR CONTROL AIR TRAFFIC AIR TRANSPORT AIR TRANSPORT LIBERALIZATION AIR TRANSPORT MARKET AIR TRANSPORTATION AIRCRAFT AIRCRAFT PARKING AIRCRAFTS AIRFARES AIRLINE AIRLINES AIRPORT INFRASTRUCTURE AIRPORTS AVIATION BENCHMARK BILATERAL TRADE CAPITAL MARKETS CARGO RATES CARGO SERVICES CARGO SPACE CARTEL COUNTRY OF ORIGIN CUSTOMS ECONOMIES OF SCALE ELASTICITY EXPORT EXPORTS FLIGHT FLIGHT ATTENDANTS FOREIGN AIRPORTS FREIGHT FREIGHT RATES FUEL FUEL COST GDP GOVERNMENT REGULATION HANDLING MARGINAL COST PASSENGER PASSENGERS RANGE ROUTE ROUTES RUNWAY RUNWAYS SHIPMENTS SHIPPERS SHIPPING SHIPPING COMPANIES SHIPPING COSTS SQUARE TIME SERIES TOTAL AIR TOTAL REVENUE TRANSPORT COSTS TRANSPORT INDUSTRY TRANSPORT MODE VALUE ADDED The relevance of transport costs has increased as liberalization continues to reduce artificial barriers to trade. Countries need to adopt policies to get closer to global markets. Can improvements in infrastructure and regulation reduce transport costs? Is it worthwhile to implement policies designed to increase competition in transport markets? Focusing on air transport, which has increased its share in US imports from 24 percent in 1990 to 35 percent in 2000, this paper quantifies the effects of infrastructure, regulatory quality and liberalization of air cargo markets on transport costs. During the 1990s, the United States implemented a series of Open Skies Agreements, providing a unique opportunity to assess the effect that a change in the competition regime has on prices. We find that infrastructure, quality of regulation and competition matter. In our sample, an improvement in airport infrastructure from the 25th to 75th percentiles reduces air transport costs by 15 percent. A similar improvement in the quality of regulation reduces air transport costs by 14 percent. Open Skies Agreements further reduce air transport costs by 8 percent. 2013-06-25T18:09:17Z 2013-06-25T18:09:17Z 2004-07 http://documents.worldbank.org/curated/en/2004/07/4984006/infrastructure-competition-regimes-air-transport-costs-cross-country-evidence http://hdl.handle.net/10986/14179 English en_US Policy Research Working Paper;No.3355 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
INFRASTRUCTURE AIR TRANSPORT TRANSPORT COSTS LIBERALIZATION REGULATORY FRAMEWORK GLOBAL MARKETS IMPORTS REGULATIONS COMPETITION TRANSPORT INDUSTRY AIM AIR CARGO AIR CARRIERS AIR CONTROL AIR TRAFFIC AIR TRANSPORT AIR TRANSPORT LIBERALIZATION AIR TRANSPORT MARKET AIR TRANSPORTATION AIRCRAFT AIRCRAFT PARKING AIRCRAFTS AIRFARES AIRLINE AIRLINES AIRPORT INFRASTRUCTURE AIRPORTS AVIATION BENCHMARK BILATERAL TRADE CAPITAL MARKETS CARGO RATES CARGO SERVICES CARGO SPACE CARTEL COUNTRY OF ORIGIN CUSTOMS ECONOMIES OF SCALE ELASTICITY EXPORT EXPORTS FLIGHT FLIGHT ATTENDANTS FOREIGN AIRPORTS FREIGHT FREIGHT RATES FUEL FUEL COST GDP GOVERNMENT REGULATION HANDLING MARGINAL COST PASSENGER PASSENGERS RANGE ROUTE ROUTES RUNWAY RUNWAYS SHIPMENTS SHIPPERS SHIPPING SHIPPING COMPANIES SHIPPING COSTS SQUARE TIME SERIES TOTAL AIR TOTAL REVENUE TRANSPORT COSTS TRANSPORT INDUSTRY TRANSPORT MODE VALUE ADDED |
| spellingShingle |
INFRASTRUCTURE AIR TRANSPORT TRANSPORT COSTS LIBERALIZATION REGULATORY FRAMEWORK GLOBAL MARKETS IMPORTS REGULATIONS COMPETITION TRANSPORT INDUSTRY AIM AIR CARGO AIR CARRIERS AIR CONTROL AIR TRAFFIC AIR TRANSPORT AIR TRANSPORT LIBERALIZATION AIR TRANSPORT MARKET AIR TRANSPORTATION AIRCRAFT AIRCRAFT PARKING AIRCRAFTS AIRFARES AIRLINE AIRLINES AIRPORT INFRASTRUCTURE AIRPORTS AVIATION BENCHMARK BILATERAL TRADE CAPITAL MARKETS CARGO RATES CARGO SERVICES CARGO SPACE CARTEL COUNTRY OF ORIGIN CUSTOMS ECONOMIES OF SCALE ELASTICITY EXPORT EXPORTS FLIGHT FLIGHT ATTENDANTS FOREIGN AIRPORTS FREIGHT FREIGHT RATES FUEL FUEL COST GDP GOVERNMENT REGULATION HANDLING MARGINAL COST PASSENGER PASSENGERS RANGE ROUTE ROUTES RUNWAY RUNWAYS SHIPMENTS SHIPPERS SHIPPING SHIPPING COMPANIES SHIPPING COSTS SQUARE TIME SERIES TOTAL AIR TOTAL REVENUE TRANSPORT COSTS TRANSPORT INDUSTRY TRANSPORT MODE VALUE ADDED Micco, Alejandro Serebrisky, Tomás Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence |
| relation |
Policy Research Working Paper;No.3355 |
| description |
The relevance of transport costs has
increased as liberalization continues to reduce artificial
barriers to trade. Countries need to adopt policies to get
closer to global markets. Can improvements in infrastructure
and regulation reduce transport costs? Is it worthwhile to
implement policies designed to increase competition in
transport markets? Focusing on air transport, which has
increased its share in US imports from 24 percent in 1990 to
35 percent in 2000, this paper quantifies the effects of
infrastructure, regulatory quality and liberalization of air
cargo markets on transport costs. During the 1990s, the
United States implemented a series of Open Skies Agreements,
providing a unique opportunity to assess the effect that a
change in the competition regime has on prices. We find that
infrastructure, quality of regulation and competition
matter. In our sample, an improvement in airport
infrastructure from the 25th to 75th percentiles reduces air
transport costs by 15 percent. A similar improvement in the
quality of regulation reduces air transport costs by 14
percent. Open Skies Agreements further reduce air transport
costs by 8 percent. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Micco, Alejandro Serebrisky, Tomás |
| author_facet |
Micco, Alejandro Serebrisky, Tomás |
| author_sort |
Micco, Alejandro |
| title |
Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence |
| title_short |
Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence |
| title_full |
Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence |
| title_fullStr |
Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence |
| title_full_unstemmed |
Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence |
| title_sort |
infrastructure, competition regimes, and air transport costs: cross-country evidence |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/07/4984006/infrastructure-competition-regimes-air-transport-costs-cross-country-evidence http://hdl.handle.net/10986/14179 |
| _version_ |
1764430474515578880 |