Airline hub and regional development : the case of Recife airport

Abstract

Airports may generate positive effects on regional economic development by attracting firms through better business opportunities, encouraging local investments, and leading to increased employment. Recent studies have shown that the expansion of air services is associated with growth in employment and income, but few studies analyze these effects in developing regions. The primary objective of this research is to assess the economic impacts of the implementation of an airline hub by Azul Linhas Aéreas in Recife in 2016. Using the synthetic control method and data for different regional levels between 2006 and 2023, it was found that the implementation of the airport hub in Recife had significant effects on the percentage of employees in the formal Travel sector and the number of registered tour guides in the capital. No significant results were obtained for the overall economy, but it is understood that this intervention had important impacts on the tourism sector in the municipality where it was implemented