The Role of International Organizations to Liberalize Air Transport Services
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Air transportation is crucial to the viability of the global economy. With a large population and robust economic growth, Asia is expected to enjoy a new dawn of air transport market and be one of the largest passenger market in the world. Economists generally agree that trade barriers are not beneficial and generate economic inefficiency. Organizations such as OECD, APEC, and ASEAN have set policies to encourage the spread of liberalization within their member countries. However while some of the individual goals of APEC and ASEAN, such as expansion of some bilateral agreements, have been achieved the widespread ambition of open-skies and full liberalization have yet to be realized. This paper offers a glimpse in how the air transport liberalization has evolved by efforts of international institution and at the same time the reason for their failures.
Abstract
Air transportation is crucial to the viability of the global economy. With a large population and robust economic growth, Asia is expected to enjoy a new dawn of air transport market and be one of the largest passenger market in the world. Economists generally agree that trade barriers are not beneficial and generate economic inefficiency. Organizations such as OECD, APEC, and ASEAN have set policies to encourage the spread of liberalization within their member countries. However while some of the individual goals of APEC and ASEAN, such as expansion of some bilateral agreements, have been achieved the widespread ambition of open-skies and full liberalization have yet to be realized. This paper offers a glimpse in how the air transport liberalization has evolved by efforts of international institution and at the same time the reason for their failures.
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