Air transport, economic growth, and regional inequality across three Chinese macro‐regions

Abstract This research considers the effects of air transport on economic growth and asks how airport development affects regional convergence across three Chinese macro‐regions. A growing body of research has examined national aviation‐growth relationships in developing countries over the last decade. Yet few studies have sought to determine whether air transport boosts regional development, especially in developing and emerging economies. Using a dataset spanning from 2005 to 2017, and drawing on panel data regression and instrumental variable analyses, we provide empirical evidence that air transport drives economic growth in China and its macro‐regions. However, we find no major synergy across air, high‐speed rail, and waterway transport as drivers of economic growth at national and regional levels. Furthermore, air transport has a significant effect in widening China’s per capita income disparity. On that basis, we suggest Chinese local governments should carefully consider equity‐efficiency trade‐offs and provincial and municipal conditions and regional contexts when planning new airports, increasing airport services, or extending aviation connectivity. Others elsewhere may derive insights from these findings.