Exploring the nexus between air transport and regional growth in central and eastern European NUTS2 Regions

Abstract

This paper examines the intricate and reciprocal relationship between air transport and regional economic growth in the NUTS2 regions of Central and Eastern Europe. By employing a dynamic panel data estimation approach using the Arellano-Bond methodology on data pertaining to 12 CEE countries, including Austria, Bulgaria, Switzerland, Czechia, Croatia, Hungary, Lithuania, Poland, Romania, Slovenia, Slovakia, and Serbia for a time span between 2017 and 2022, the study aims to determine whether air transport stimulates regional growth and employment. The results indicate that the total number of air passengers generally has a significant, positive impact on RGDP. However, while air transport may create employment opportunities, its influence on regional employment is less robust compared to its impact on RGDP.

Keywords

• air transport
• central and eastern europe
• data panel analysis
• employment
• regional growth