The paper
Air transport policy affects much more than the aviation industry. This study links the openness of bilateral aviation regimes with merchandise trade among APEC economies.
Research findings
- More liberal air services policies are associated with higher bilateral merchandise trade, including for economies connected through third-country transit.
- The relationship is particularly strong for manufactured goods, time-sensitive products, and parts and components.
Policy takeaways
- Include aviation regulation in strategies for joining international production networks.
- Assess air services liberalization through its benefits for goods producers and supply chains, as well as for carriers.