Abstract
The objective of this study is to analyze the contribution of governance (political stability) as well as per capita income and traffic past measured through the number of passengers traveling by air during a period of one year within each country of the zone to the formation of a hub in the WAEMU zone. Governance has been apprehended through Kaufman indicators which summarize the six dimensions of governance. Three control variables have been added in the model to better explain per capita income and reduce bias in the estimation. To achieve this objective, the study proceeded first with a descriptive analysis which revealed the existence of a positive linear correlation between governance indicators and the level of air traffic, and then with a dynamic panel approach. To this end, the Generalized Moment Method (GMM) showed that the overall contribution of governance to economic performance is not significant in the sample, as well as for each dimension of governance taken individually. However, the results differ when dissociating the specific effect of Senegal, where political stability, government effectiveness, regulatory quality and rules and laws each have a positive and significant impact on per capita income.
Highlights
1.1 Introduce the ProblemA hub is an airport connection platform
We have examined an econometric model for the problem of locating an air hub for the area West African Monetary and Economic Union (WAEMU)
Governance has been understood by its six dimensions According to the Kaufman indicators and the level of air traffic, the data used come from the database of the WB
Summary
A hub is an airport connection platform. The choice of its location consists in determining the ideal location of the airport in order to optimize economic function. (Rodriguez et al, 2007) have solved the problem of localization and allocation unique of a hub with high capacity by Branch and Price.All these authors, the list of which is not exhaustive, have made a contribution in the air transport system, but so far none of the authors have taken into account the political stability of the countries. Almost no specific contribution for the UEMOA zone (N?DOGOTAR N?elio et al, 2015) have solved a model for locating a hub air, which minimizes the distances traveled by taking into account the flow of passengers registered in the airports of the UEMOA zone.In this article, we bring our contribution in the management of the air transport system in the UEMOA zone by proposing and by simulating a model of localization of an air hub by a dynamic panel approach, which analyzes the contribution of governance (political stability) as well as per capita income and air traffic measured through the number of passengers who travel by plane during a period of one year within each countries of the zone to the formation of a hub in the WAEMU zone and we use the Stata software for the simulation
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