Title:  International Flights and International Trade: Evidence from Chinese Cities

Speaker：Shihe Fu, Xiamen University

Time： 2021年5月31日，15:10 – 16:10

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About the speaker:

Shihe Fu received his Ph.D. degree in economics from Boston College in 2005 and is currently a professor at Xiamen University. His research areas are urban economics, labor economics, and environmental economics. His publications appear in refereed journals such as Economic Journal, Review of Economics and Statistics, Journal of Public Economics, Journal of Labor Economics, and Journal of Urban Economics.  

Abstract:

This paper estimates how launching nonstop international flights by Chinese cities promote cities’ trade with destination countries. Using a difference-in-difference approach with a rich set of fixed effects to control for confounding factors, we find that after a city connects with a foreign country via nonstop flight, the city’s exports to that country increases by 17% relative to the period before; imports from the destination country increases even more. We provide suggestive evidence that this is due to nonstop international flights facilitates cross-border face-to-face communications.

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