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

Abstract

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.