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Toward a Competitive Air Transport Market in Africa: The Role of Bilateral Air Service Agreements Liberalization

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dc.contributor.authorCristea, Anca
dc.contributor.authorAbate, Megersa
dc.contributor.authorBenitz, Daniel A.
dc.date.accessioned2022-10-14T18:07:49Z
dc.date.available2022-10-14T18:07:49Z
dc.date.issued2022-10
dc.description.abstractThis study examines the impact of bilateral air service agreements on air passenger transport in Africa and quantifies the consumer welfare effects associated with air transport liberalization. Using an unbalanced panel of 71 country pairs from Africa observed over 2011–19, the paper estimates the extent to which bilateral air service agreements liberalization affects the following: (1) passenger travel, (2) average airfares, (3) flight frequency, and (4) market competition within a country pair. The empirical analysis employs the difference-in-differences estimation method and pays close attention to the endogeneity concerns coming from the simultaneity and reverse causality surrounding the pricing, demand, and frequency decisions. The results indicate that both partial and full liberalization of bilateral air service agreements lead to a reduction in airfares and an increase in air travel demand and flight frequency, respectively. The analysis finds no evidence that market competition, as measured by the number of operating airlines, increases following liberalization. After quantifying all the channels through which the policy environment can affect air transport markets in Africa, the findings show that aviation liberalization generates consumer benefits that are equivalent to a 40–42 percent drop in airfares, that is, the price equivalent effect of air liberalization.en
dc.identifierhttp://documents.worldbank.org/curated/en/099555110132219853/IDU069c261ca03c920460809bbe0343ae9c8918b
dc.identifier.doi10.1596/1813-9450-10204
dc.identifier.urihttps://hdl.handle.net/10986/38154
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers;10204
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectPASSENGER AVIATION
dc.subjectAIR LIBERALIZATION
dc.subjectAIR SERVICE AGREEMENT
dc.subjectAIR TRANSPORT MARKET COMPETITION
dc.subjectAIR TRANSPORT DEREGULATION
dc.subjectYAMOUSSOUKRO DECISION
dc.subjectSINGLE AIR TRANSPORT MARKET
dc.titleToward a Competitive Air Transport Market in Africaen
dc.title.subtitleThe Role of Bilateral Air Service Agreements Liberalizationen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleToward a Competitive Air Transport Market in Africa: The Role of Bilateral Air Service Agreements Liberalization
okr.date.disclosure2022-10-13
okr.date.doiregistration2025-04-10T09:26:53.023200Z
okr.date.lastmodified2022-10-13T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099555110132219853/IDU069c261ca03c920460809bbe0343ae9c8918b
okr.guid099555110132219853
okr.identifier.doi10.1596/1813-9450-10204
okr.identifier.externaldocumentumIDU-69c261ca-3c92-4608-9bbe-343ae9c8918b
okr.identifier.internaldocumentum33916705
okr.identifier.reportWPS10204
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099555110132219853/pdf/IDU069c261ca03c920460809bbe0343ae9c8918b.pdfen
okr.region.geographicalAfrica
okr.topicInternational Economics and Trade::Trade and Transport
okr.topicTransport::Airports and Air Services
okr.topicInfrastructure Economics and Finance::Infrastructure Regulation
okr.topicInfrastructure Economics and Finance::Private Participation in Infrastructure
okr.unitITRGK - Global Knowledge (ITRGK)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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