Airport Economic Theory

Airport economy is a new economic form emerging in recent years, of which formation and development is the results of scientific and technological progress. Since the late 20th century, with the scientific and technological progress and wide application of information technology, particularly the application of the internet, the world economy developing patterns have changed. To take full advantage of regional comparative advantages and acquire the benefits due to lower production costs, there are economic globalization characterized by globalization of production, market, and producing factors,at the same time,industry transfering between states is accelerating. In this process of economic globalization movement, air transport is catalyst whicch accelerate division of production in world and international transfer of industry. The traffic volume of passenger and cargo increase several times in international gateway of the airport, which make airport being nodes of people flow, logistics and information flow together. Airport gradually changing its function as a single transport of passenger and cargo , airport and its surrounding areas become gathering area of aviation transportation industry, aviation services industry, aviation manufacturing industry, hi-tech industry, modern manufacturing industry , modern service industry, and traditional life service industries, which lead to the phenomenon of airport economy.Purpose of this paper, in the above phenomenon as a background, is to puts forward the countermeasures of Chinese airport economy development so as to promote coordinated development of regional economy in China, which provide the path realizing common prosperity. In order to acquire the purpose, the paper,through the combining method of standard analysis and empirical analysis, investigates the concept of airport economy, the characteristics of airport economy, the effects of airport economy, the stage of airport economic development , the mechanism of the airport economy formation, the dynamic mechanism of airport economy, the mechanism of airport economy interaction with the outside world, and the status of airport economy development in china.First, paper defines airport economy and the zone of airport economy, and points out that the concept of airport economy should be understanded from the four aspects of airport , space, industry, and new pattern, and that the concept of the zone of airport economy should be understanded from airport industrial carrier and geographical space. Paper analyse the characteristics of airport directivity, industrial agglomeration, circular spatial distribution, easy market accessibility and fast market accessibility, and regional economic growth polar, which belong to airport economy. The model of force field is be built in airport economy, on base of which the effect of polarization, spread, and overflow are be discussed. on the other hand, paper investigates the effect of domination and multiplier. According to the concept of life cycle in biology, paper studies the relevant features of initial stage, growth stage, mature stage, bottleneck stage, and aviation city development stage.Secondly, the paper studies the operation mechanism of airport economy. From the industry level and spatial dimensions, it is discussed that time-based competition, flexible production methods, resource endowment, and external scale economy, contribute to the formation mechanism of airport economy. Dynamic model of airport economy operation is established, on base of which paper analyse five dynamic mechanism of airport economy operation contributed by technology innovation, agglomeration economies, industrial chain division, institutional change, and market mechanisms. Paper discuss action mechanism between airport economy zone and the city which airport depend on, airport economy zone and hinterland, and airport economy zone and other airport economy zone.Third, paper executes the empirical study about airport economy. Beijing airport economy is selected as target of the empirical study. The study reveal the developing course and circular space structure of of Beijing airport economy zone. The studies are carried out about the development status of functional zone, such as tianzhu comprehensive free trade zone, airport economic development zone, airport economic development zone, international business district, Linhe economic development zone, auto production base, airport logistics base.Finally, this paper investigates the strategy of airport economy development in china on condition of co-ordinating development of regional economy. At the same time, the paper study the role of airport economy contributing to regional harmonious development, the path of airport economy system constructed in china, and the countermeasure and the suggestion of developing airport economy.Based on the above mentioned theme of airport economy investigated, this paper's main conclusions are as follows: 1.Airport economy has five characteristics. According to the analysis of airport economic phenomenon, it is concluded that the airport economy has five characteristics, including airport directional characteristics, industrial agglomeration characteristics, circular spatial distribution characteristics, the characteristics of easy market accessibility and fast market accessibility, and the characteristics of regional economic growth polar.2.Airport economic development course can be divided into five stages. According to the industry life cycle theory, the course of airport economy development is is discussed and it is thought that airport economy develop in line with initial stage, growth stage, mature stage, bottleneck stage, and aviation city development stage in turn. Moreover, the features of all stage are studied.3.Industry and space factors promote the formation of airport economy at two levels. At the industry level, time constraints for the production of products for companies, time-based competition in the market competition is the key for companies, which produce product of time constrains, to achieve victory. in order to achieve time-based competition, high-tech industries, modern manufacturing, high-end clothing and modern gardening agriculture etc take the initiative to gather around the airport. Flexible production approach requires compress the cycle time of purchase, production and distribution, which promote high-tech industries and high-end clothing industry to choose its location around the airport. In the space level, resource endowment provide the possibility for the formation of airport economy, the resources of airport and its facilities, and route network resources are naccessary resources which result in the formation of airport economy. The resource of production factors in the regional airport is an indispensable condition for the formation of airport economy. External scale economy economize production cost, which promote enterprise to gather in the airport economic zone.4.Five dynamic drive airport economy to operate stably. Through theoretical analysis, it is thought that five dynamic, which drive airport economy to operate, are innovation dynamic, agglomeration economies dynamic, the dynamic of industrial chain division, government dynamic, and market dynamic. Innovation dynamic improve production efficiency of driven enterprise, promote production factors to flow among enterprises and airport industry to upgrade, and drive airport economy to evolve to higher forms. Agglomeration economies dynamic reduce production costs and improve efficiency of production and operations, and promote development of airport economy. The dynamic of industrial chain division form functional specialization economy and speed economy, which economize the costs of airport enterprise and enhance the efficiency and benefit of production. Government dynamic prompt system changes, offer a predictable environment in which airport economy run, and promote the airport economy continues to evolve. Market dynamic accelerate industrial agglomeration and industrial chain division and guide technological innovation and institutional change, thus promoting the formation and development of airport economy.5.Some developed areas of China have started develop airport economy and show some typical characteristics of airport economy, but the development is not perfect. Beijing airport economic zone is selected as object which is studied in order to get airport economic phenomenon. the results show as follows: Spatial structure of circle has formed preliminarilly in Beijing airport economic zone; the industry of airport directivity has be developped to a certain extent, but not mature; Air transport, air services and aviation logistics industry are relatively mature, forming a relatively complete industrial system; The characteristics of industrial agglomeration is obvious and industrial clusters are forming, but the role of agglomeration economies is not enough; The regional poles of economic growth is not fully showed, the diffusion effect is not able to fully play, and spillover effect is not obvious; traditional industries and the industry which do not belong to airport directivity are excess in airport economic zone, which need to be gradually adjusted.6.China's airport economic system is constituted by the three airport economic zone. The airport economic zone, which locate in three major international hub airport, is classed as first grade airport economic zone. The airport economic zone, which locate in main route airport, is classed as second grade airport economic zone. The airport economic zone, which locate in part of minor route airport, is classed as third grade airport economic zone.7.Five measures to promote China's airport economic development. In order to develop airport economy and achieve co-ordinated development of China's regional economy, it is imperative to take five steps: planning in advance, selecting airport industry preferably, strengthening technological innovation, focusing on government policy arrangements, the establishment of support mechanisms and market mechanisms.