2004年-世界发展银行全球_Infrastructure_Competition____________Regimes_and_Air_Transport_Costs__Cross-Country_Evidence_36页_318kb

Summary of "Infrastructure, Competition Regimes, and Air Transport Costs: Cross-Country Evidence"

Core Content

This paper investigates the impact of infrastructure, regulatory quality, and competition regimes on air transport costs, using U.S. import data from 1990 to 2001. The study focuses on the air cargo market, which has become increasingly significant in U.S. trade, and analyzes how liberalization policies, such as Open Skies Agreements, affect transport costs.

Main Viewpoints

• Transport costs are a crucial component of trade costs and have a significant impact on trade volumes.
• Distance remains a key determinant of air transport costs, with estimates showing that a 10% increase in distance reduces trade volume by 9–15%.
• Airport infrastructure plays a major role in reducing air transport costs. Improvements in infrastructure from the 25th to the 75th percentile reduce costs by 15%.
• Regulatory quality also significantly affects transport costs. A similar improvement in regulatory quality reduces costs by 14%.
• Competition regimes, particularly through Open Skies Agreements, reduce air transport costs by 8%.
• The U.S. government has implemented over 55 Open Skies Agreements with countries around the world since 1992, promoting free market competition and reducing entry barriers in air transport.

Key Information

Data and Methodology

• The study uses HS four-digit classification data for products and panel data to estimate the effects of infrastructure, regulatory quality, and competition regimes on air transport costs.
• A reduced-form econometric model is used, where air transport costs are modeled as the sum of marginal cost and markup.
• The model is estimated using cross-sectional and panel data approaches, with country fixed effects to isolate the time-series impact of Open Skies Agreements.
• To address endogeneity issues, the paper uses GDP as an instrument for import volume.

Empirical Findings

• Distance has a positive and significant effect on air transport costs. A doubling of distance leads to a 20% increase in costs.
• Import volume has a negative and significant effect, reflecting economies of scale. An increase in import volume from the 25th to the 75th percentile reduces costs by 11%.
• Product unit value has a positive and significant effect, due to the insurance component of transport costs. Higher unit values result in higher insurance and thus higher transport costs.
• Directional trade imbalance has a negative and significant effect. A shift from a favorable to an unfavorable trade balance increases transport costs by 16%.
• Airport infrastructure has a negative and significant effect. Improvements in infrastructure reduce costs by 15%.
• Regulatory quality has a negative and significant effect, with improvements reducing costs by 14%.
• Open Skies Agreements have a negative and significant effect, reducing costs by 8%.

Policy Implications

• The results suggest that investments in airport infrastructure and improvements in regulatory quality are effective in reducing air transport costs.
• Open Skies Agreements contribute to cost reductions by increasing market competition.
• These findings support the idea that liberalization and deregulation of air transport markets can have a quantifiable and positive impact on trade efficiency and cost.

Structure of the Paper

1. Introduction

   • Highlights the growing importance of transport costs in trade and the need to reduce them through policy.
   • Introduces the focus on air transport, given its increasing role in U.S. imports and the availability of detailed data.

2. Determinants of Air Transport Costs

   • Discusses the main factors influencing air transport costs, including geography, infrastructure, regulation, and competition.
   • Emphasizes the role of Open Skies Agreements in promoting free market competition and reducing air cargo prices.

3. Empirical Framework

   • Describes the reduced-form econometric model used to estimate the impact of infrastructure, regulation, and competition on air transport costs.
   • Explains the use of country dummies and instrumental variables to address endogeneity and cross-sectional bias.

4. Empirical Results

   • Reports cross-sectional and panel data results, showing the quantifiable impact of infrastructure, regulation, and competition on air transport costs.
   • Highlights the effectiveness of Open Skies Agreements in reducing transport costs and the importance of policy reforms in enhancing trade efficiency.

Conclusion

• The paper concludes that infrastructure, regulatory quality, and competition regimes all have a significant impact on air transport costs.
• Open Skies Agreements provide a unique opportunity to assess the effect of competition on transport costs.
• The results support the implementation of policies aimed at improving infrastructure and regulatory quality and liberalizing air transport markets to reduce costs and enhance trade integration.