Economic Impacts of Public Air Transport Investment: A Case Study of Egypt

Eric Tchouamou Njoya, Ahmad Muhammad Ragab

Research output: Contribution to journalArticlepeer-review

Abstract

This paper applies an input–output (I-O) approach and a dynamic computable general equilibrium (CGE) model to examine the economy-wide short- and long-run impacts of an increase in public capital investment in air transport infrastructure. The results of the I-O analysis reveal that air transport has above-average backward linkages with other sectors in the economy, with mining being the most intensive industry in intermediate input demand for air transport. The results of the CGE simulation show that at the macroeconomic level, expanding public air transport stock induces modest growth in GDP, employment, income, consumption, private investment, and trade. The findings show that the estimated impact of air transport investment is lower than estimated in studies on the “multiplier effect” of the investment using partial equilibrium techniques.
Original languageEnglish
Article number2651
Number of pages19
JournalSustainability
Volume14
Issue number5
Early online date24 Feb 2022
DOIs
Publication statusPublished - 1 Mar 2022

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