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Economic Development Quarterly
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Flight Plans for Development: Aviation Investments and Outputs in Nine Metropolitan Regions, 1990 to 2002

Samuel Nunn

Indiana University–Purdue University Indianapolis

Airports form the logistical core of metropolitan areas, improve economic development potential of regions, and are required to meet the demand for aviation services and to purchase increases in airport outputs. This study examines the relationship between aviation investments and outputs that might be affected by such investments. Nine metropolitan regions (five in the Midwest and four in other regions exhibiting economic success) are examined. The nine areas invested in aviation at different rates between 1990 and 2002 and generated aviation outputs linked to these investments. Midwestern regions spent more on aviation infrastructure than did the other regions, apparently purchasing more plane, passenger, and cargo activity. In several regions, aviation investments in the early 1990s might have increased selected aviation outputs in the late 1990s. The metropolitan regions with successful economic performance exhibited lower rates of aviation investment. The findings question whether large aviation investments are necessary for economic success.

Key Words: aviation infrastructure • economic development • capital investments • return on investments

Economic Development Quarterly, Vol. 19, No. 4, 295-312 (2005)
DOI: 10.1177/0891242405278196
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