How New Airport Infrastructure Promotes Tourism: Evidence from a Synthetic Control Approach in German Regions

39 Pages Posted: 14 Jan 2020

See all articles by Luisa Doerr

Luisa Doerr

CESifo (Center for Economic Studies and Ifo Institute)

Florian Dorn

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Stefanie Gaebler

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute)

Date Written: 2019

Abstract

We examine how new airport infrastructure influences regional tourism. Identification is based on the conversion of a military air base into a regional commercial airport in the German state of Bavaria. The new airport opened in 2007 and promotes travelling to the touristic region Allgäu in the Bavarian Alps. We use a synthetic control approach and show that the new commercial airport increased tourism in the Allgäu region over the period 2008-2016. The positive effect is especially pronounced in the county where the airport is located. Our results suggest that new transportation infrastructure promotes regional economic development.

Keywords: airports, tourism, regional development, transportation infrastructure, synthetic control method

JEL Classification: O180, Z380, L930

Suggested Citation

Doerr, Luisa and Dorn, Florian and Gaebler, Stefanie and Potrafke, Niklas, How New Airport Infrastructure Promotes Tourism: Evidence from a Synthetic Control Approach in German Regions (2019). CESifo Working Paper No. 8010, Available at SSRN: https://ssrn.com/abstract=3518957

Luisa Doerr (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Florian Dorn

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Stefanie Gaebler

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Niklas Potrafke

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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