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dc.titleInfrastructure, Competition Regimes and Air Transport Costs: Cross Country Evidence
dc.contributor.authorMicco, Alejandro
dc.contributor.authorSerebrisky, Tomás
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageUnited States
dc.date.available2011-02-07T00:00:00
dc.date.issue2004-07-01T00:00:00
dc.description.abstractThe 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 US implemented a series of Open Skies agreements, which have provided a unique opportunity to assess the effect on prices of a change in the competition regime. 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 15 percent. A similar improvement in the quality of regulation reduces air transport costs 14 percent. In addition, Open Skies agreements reduce air transport costs by 8 percent.
dc.identifier.doihttp://dx.doi.org/10.18235/0010953
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Infrastructure-Competition-Regimes-and-Air-Transport-Costs-Cross-Country-Evidence.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectInfrastructure Work
dc.subject.jelcodeF43 - Economic Growth of Open Economies
dc.subject.jelcodeL4 - Antitrust Issues and Policies
dc.subject.jelcodeL40 - Antitrust Issues and Policies: General
dc.subject.jelcodeL41 - Monopolization • Horizontal Anticompetitive Practices
dc.subject.jelcodeL42 - Vertical Restraints • Resale Price Maintenance • Quantity Discounts
dc.subject.jelcodeL43 - Legal Monopolies and Regulation or Deregulation
dc.subject.jelcodeL44 - Antitrust Policy and Public Enterprises, Nonprofit Institutions, and Professional Organizations
dc.subject.jelcodeL49 - Antitrust Issues and Policies: Other
dc.subject.jelcodeL93 - Air Transportation
dc.subject.keywordsWP-510
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
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