Economy

How Direct Flights Shape a City's Fortunes

Nonstop flights between cities are a more effective way of generating inter-city investment than increased airport capacity.
A woman waits for a flight at the airport in Chengdu.John Ruwitch/Reuters

Not long ago, it was thought that planes would flatten the world, spreading us out even more than the rise of railroads and cars did in previous eras. But the reality has been much the reverse. Airplanes, airports, and air travel have contributed to our geographic spikiness, fueling the growing concentration of population and economic activity in a small number of large, productive, and well-connected superstar cities.

That’s one of the key findings of a recent study on the effects of global airports and air connectivity on economic and urban development. The study, by economists at Harvard University’s Kennedy School of Government and the University of Zurich, examines air travel’s role in the economic performance of more than 819 cities and metro areas in 200 different countries. Using detailed data from the International Civil Aviation Organization, it looks specifically at how direct flights facilitate business links and investments between pairs of cities, with data on over half a million businesses and more than 30,000 major business events around the world.