An empirical investigation of intra-ASEAN air connectivity

Abstract

This paper undertakes an empirical assessment of how the master plan on ASEAN connectivity (MPAC) impacts air passenger flows and air cargo throughput, thereby contributing to enhance regional institutional connectivity. The empirical analysis employed in this paper involves a combination of time trend analysis as well as an extension of the classic gravity model of international trade to understand the impact of MPAC on air passenger flows in the ASEAN region. Evidence from the gravity model points to the challenges of achieving regional institutional harmonisation, proxied in this paper by intra-ASEAN bilateral air passenger flows and air cargo throughput. This paper is one of the first in the related literature to provide such an examination, offering valuable lessons for policy makers in the region, especially viewed in the context of the importance of air transport industry for the development of the region to realise the goals of the MPAC.