Analysis of Interaction between Air Transportation and Economic Activity

Abstract

This paper uses both world-wide and country-level analysis to describe the relationship between air transportation and economic activity. In particular, we describe how economic, infrastructural, institutional and geographic factors affect the mapping of cargo and passenger flows to the enabled flows of labor, knowledge, investment, remittances, tourism and goods. We also identify the role of government and exogenous drivers in this relationship. We illustrate the relationship using several examples: Dubai in the United Arab Emirates, Jamaica, China and India.