Air Cargo Shipments And Regional Employment: The Northern Nevada Case

Abstract

Air cargo is a critical component for developing an integrated transportation system to facilitate regional economic diversification and growth.  Additionally, demand for air cargo shipments is affected by regional, national and international economic conditions. To get a better sense on these issues in Northern Nevada, a study was conducted to determine : (1)  characteristics of business behavior for air cargo and other freight modes at Reno-Tahoe International Airport  and  (2) if  employment in Reno MSA, as  a proxy for regional business  activities, has a systematic impact on air cargo shipments at Reno-Tahoe International Airport. The first question is examined by conducting interviews and surveys of the firms in Northern Nevada in 2002-2003.  The second question is evaluated by estimating time-series models using monthly data on employmen  in Reno MSA and air cargo shipments at Reno-Tahoe International Airport. The findings do support the importance of regional economic factors in determining the demand for air cargo shipments.