Effects of African aviation liberalisation on economic freedom, air connectivity and related economic consequences

Abstract

This article investigates the effects of air transport liberalisation on economic freedom and air connectivity, and the extended effects on economic development. A PLS path modelling estimator, applied to annual data for 52 countries over the period 2011–2019, shows that aviation liberalisation promotes economic freedom and improves air connectivity. The results also reveal that the economic contribution of air transport liberalisation varies across African countries and regions, relative to their levels of economic freedom and air connectivity. It is concluded that removing barriers to trade using air transport, combined with institutions that support economic freedom and the quality of air connectivity, may foster countries’ economic development. Keywords: liberalisation, economic freedom, air connectivity, economic development, Africa