**3.2. Air transport regional economic impact analysis**

creates wider economic benefits of trade in services and goods, tourism, foreign direct invest-

In literature as regards the air transport interaction with economy, there are many empirical analyses and ex-post assessments that analyse the sector's socioeconomic impact with different methodologies, with no unique approach to determine the interdependence of the two industries. Ref. [11] provides a guidance to estimate the economic effects of air transport, typically relying on the following approaches: the assessment of costs and benefits and the impact

Cost-benefit analysis (CBA) may be a valuable tool for cases where a large number of investments in the air transport sector have to be ranked against each other and define a strategic

**3. Methodology for estimating air transport economic impact**

**Figure 1.** Demand-supply variable decision-making in air transport industry (source: [1]).

ment, productivity and innovation.

146 Mobilities, Tourism and Travel Behavior - Contexts and Boundaries

analysis methods (multipliers) [11].

**3.1. Cost-benefit analysis (CBA)**

"The air transport industry has a substantial economic impact, both through its own activities and as an enabler of other industries [17]." Economic development can be influenced by air transport sector mainly through direct, indirect and induced cycles [12]:


Besides direct, indirect and induced effects that spur economic regional development as analysed in Refs. [17–19], there is also an additional impact, the catalytic that encourages further investigation to identify aviation economic sector outputs interacted with other sectors of the economy such as tourism, trade, real estate [20].

The quantification of benefits as part of the previous analysis of the types of impact caused by air transport is calculated through economic impact analysis. Economic impact analysis traces the effects of expenditures of the air transport sector through the economy. An initial expenditure circulates through the economy and creates a chain reaction of additional expenditures [21].

Economic impact analyses usually are based on two different methods for analysing economic impact. The one is the input-output analysis (IO analysis), based on interindustry transactions and business sectors in order to quantify the response of the change in one business sector to another. Based on these data, multipliers are calculated in order to be used to estimate economic impact. An alternative methodology for conducting economic impact analyses is the Computable General Equilibrium (CGE) models. The fundamental difference is that in addition to what IO analysis does, CGE attempts to forecast the impacts due to future economic, price, economic and population changes.
