The impacts of airport economic zones on local urban development in China

Abstract

<p>China's implementation of Airport Economic Zones (AEZs) seeks to capitalize on aviation infrastructure for local development. While existing studies have assessed airport-related urban development in China, the specific impacts of AEZ policies on local economies remain underexamined. To this end, our study evaluates the impacts of AEZs on local economies, utilizing a panel dataset of 62 prefecture-level cities in China spanning 2000–2019. We employ a heterogeneous timing difference-in-differences method to assess localized economic impacts of AEZs, considering three specific treatment timings. The results show that AEZs have positive but limited impacts on localized economic growth, particularly evident in increased economic activities around airports. Local economic impacts of more recently announced national airport economic demonstration zones are insignificant in the analysis. Meanwhile, the establishment of other kinds of development zones around airports fosters nearby economic activity and employment in airport-related sectors, oftentimes with higher levels of statistical significance. These findings add empirical evidence for airport region development's impact on economy and underscore the importance of institutional support for maximizing AEZs' contributions to urban development.<br></p>