Abstract:

China’s airport construction policy has been successful in boosting manufacturing output, according to research by Stephen Gibbons and Wenjie Wu. Their study also finds that productivity impacts have been greater for private firms in areas with relatively high population and low educational achievement. The researchers address the question of whether opening new airports and expanding airport capacity stimulate economic growth, particularly in developing countries. The evidence they find on the positive impact of airport infrastructure in China suggests that reduced travel times and improved domestic market access help to boost industrial productivity.

This article summarises ‘Airports, Market Access and Local Economic Performance: Evidence from China’ by Stephen Gibbons and Wenjie Wu, Spatial Economics Research Centre (SERC) Discussion Paper No. 211.