On the political determinants of wide-body aircraft sales, 1974-89

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On the political determinants of wide-body aircraft sales, 1974-89

Jopp, Tobias Alexander; Spoerer, Mark

Applied economics letters, 02/2023, Volume: 30, Issue: 4

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This article contributes to the ongoing discussion on unfair government support for the world's major civil aircraft producers, Airbus and Boeing. In a logit setting, we identify political (and economic) determinants of airlines' decision to buy either Airbus or American brand-new wide-bodies in the market's formative period. We find evidence for political determinants at work not only for Airbus, but - to an even greater extent - also for the American manufacturers, such as home bias.

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