Determining the Global Economic Inter-Relationships of the U.S. Air Transportation Services Industry Using Input-Output Analysis

Abstract

Global integration of economies over the past two decades has interconnected many of the countries and industries in the world. The World Input Output Database (WIOD) provides domestic output production and use information on 59 industries, in 40 countries that cover 85% of the global output. Using 2010 U.S. Air Transportation Services (ATS) industry growth as a proxy for change in the final demand variable, the additional output from each other industry necessary to supply the additional U.S. ATS growth was calculated using IO analysis. IO analysis is useful for descriptive analysis, forecasting, and assessment of policy impact scenarios.  No real eye-opening trends in industries resulted from this limited analysis, perhaps because ATS is less than 1% of U.S. GDP. The aggregate GDP sectors receiving a positive boost from growth in the U.S. ATS industry were agriculture; mining; transportation & warehousing; and some manufacturing and service industries. The aggregate GDP sectors receiving a negative boost from growth in the U.S. ATS industry were construction; finance, insurance, and real estate; wholesale and retail trade; and other service sectors.