The determinants of air cargo flows and the role of multinational agreements: An empirical comparison with trade and air passenger flows

This paper analyses the effect of standard gravity model variables and various multinational agreements—namely Euro, European Union (EU), Schengen Agreement other regional trade agreements (RTAs)—on volume air cargo flows. To compare impacts, data set created for this analysis contains intra- extra-European flows as well on passenger total The results suggest that impact analysed diverges completely from their flows—however, effects are more similar to Whereas Euro affect volumes positively, EU membership RTAs do not significantly by air. Methodology-wise, different dynamic structural models formulated estimated with Poisson pseudo-maximum likelihood (PPML). Including intranational controlling multilateral resistance, endogeneity globalisation reverses some policy compared an estimate based a simple model.