The role of infrastructure for economic development in an airport metropolis' region

368 Pages·2017·2.7 MB·English

Southern Cross University
ePublications@SCU
Theses
2014
The role of infrastructure for economic
development in an airport metropolis' region
Mirjam Inga Wiedemann
Southern Cross University
Publication details
Wiedemann, MI, 'The role of infrastructure for economic development in an airport metropolis' region', PhD thesis, Southern Cross
University, Lismore, NSW.
Copyright MI Wiedemann 2014
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Mirjam I. Wiedemann, Dipl.-Ing.

The Role of Infrastructure for
Economic Development in an
Airport Metropolis’ Region

A thesis submitted to the School of Tourism & Hospitality
Management of Southern Cross University in fulfilment of the
requirements for the degree of Doctor of Philosophy

January 2014
Thesis Declaration

I certify that the work presented in this thesis is, to the best of my knowledge and
belief, original, except as acknowledged in the text, and that the material has not
been submitted, either in whole or in part, for a degree at this or any other
university.
I acknowledge that I have read and understood the University's rules, requirements,
procedures and policy relating to my higher degree research award and to my
thesis. I certify that I have complied with the rules, requirements, procedures and
policy of the University (as they may be changed from time to time).

5th of January 2014

Mirjam Wiedemann

Thesis Declaration I
Abstract

This thesis examines the relationship between infrastructure and economic
development in airport regions.

In recent decades, income from aviation-related revenues for airports has become
more insecure due to deregulation and privatisation. As a result, new business
models, such as an Airport City or Aerotropolis, have been developed. As these
models include much more than the management of air traffic infrastructure, and
extend to embrace regional development, new knowledge such as how to attract
companies, is necessary.

Industry location theory suggests that physical infrastructure is a strong pull factor
for firms’ decision of location while the creative class theory indirectly
acknowledges physical and social infrastructure as an attraction factor for
businesses. Nevertheless, academic literature about the influence of both physical
and social infrastructure on companies’ location decision is limited. Research shows
that the spatial location of infrastructure influences its effect on economic
development but research determining the spatial dimension is lacking.

Consequently, this research aims to answer the research question, ‘What is the role
of infrastructure in economic development in an Airport Metropolis’ Region’ by
examining the following four sub-questions:

(1) What is the role of airports as economic development infrastructure in the
Airport Metropolis’ Region?
(2) What is the role of other physical infrastructure elements for economic
development in the Airport Metropolis’ Region?
(3) What is the role of social infrastructure for economic development in the
Airport Metropolis’ Region?
(4) Where should infrastructure be provided to stimulate spatial economic
development in the Airport Metropolis’ Region?

Abstract II
By applying a multi-method approach and a comparative methodology of four
different Airport Metropolis’ Regions in two different countries, airports worldwide
were surveyed and interviews were conducted with companies’ decision-makers
from three different business sectors and with economic development agencies.
Preferences for different infrastructure elements for business location were
explored in depth and the desired spatial dimension was analysed by embedding a
quantitative data collection in the framework of qualitative interviews.

Results contributed to extending knowledge of the Airport City and Aerotropolis
business models, finding that the ‘environment’ is an important location factor for
industry in the twenty-first century, and demonstrated that region and culture
influence the role of different infrastructure elements for companies’ decision of
location. The study advanced location theory by adding new roles to the
environment, regional circumstances and cultural background and extended
creative class theory by contributing a new understanding of spatial dimension in
the choice of location.

Abstract III
Acknowledgements

I would like to thank many people from the bottom of my heart! Without their help,
support and willingness to open their doors for me and share their knowledge, this
thesis would not have been possible.

First of all, I would like to thank my supervisors in Australia, Professor Kerry Brown
and Professor Neal Ryan, and in Spain, Professor Javier Tafur, for their ongoing
support and belief in me and my work. Furthermore, I’m grateful for the financial
support of Southern Cross University and Erich-Becker-Stiftung.

This thesis could be conducted only as several people from all over the world were
ready to share their knowledge with me by filling in my survey, participating in the
interviews, offering private airport tours and sharing insights at many conferences
and informal talks. Thank you!

I would also like to thank my family for facilitating my education and supporting me
while I was doing research in Berlin and Frankfurt.

An important part of a PhD journey are the people who share it with you. I’m
grateful for all my PhD peers in Australia and Spain and for our fruitful discussions
about methodology, research design and theory. In particular, I would like to thank
Sabine Muschter, Monica Torland and Fatemeh Aminzadeh for their ongoing
friendship and support. I’m also in debt to all my other friends who encouraged me
in the last few months of my PhD with a lot of understanding and a cheerful ‘Just
keep going, girl! You are so close!’ Also, I would like to thank the staff at the
university cafeterias at the Gold Coast and in Madrid for their ability to serve the
coffee always with an encouraging smile and chat.

Last but not least, I’m grateful for this wonderful life, the ongoing journey and the
opportunities I’m coming across on the way.

Acknowledgements IV
Table of Contents

THESIS DECLARATION ........................................................................................................... I
ABSTRACT .............................................................................................................................. II
ACKNOWLEDGEMENTS ...................................................................................................... IV
TABLE OF CONTENTS ............................................................................................................ V
LIST OF FIGURES .................................................................................................................. IX
LIST OF TABLES ...................................................................................................................... X
LIST OF ABBREVIATIONS .................................................................................................... XI
1 INTRODUCTION ......................................................................................................... 1
1.1 Research Problem ................................................................................................................... 1
1.1.1 Airports: Historical background .......................................................................................... 5
1.1.2 Changed business model forced by privatisation ............................................................... 7
1.1.3 Changed business model forced by the need to generate revenues ................................ 12
1.1.4 Airport City and Aerotropolis: insights from global practices ........................................... 15
1.1.5 Importance of companies’ decision of location for the Airport Metropolis’ Region ........ 18
1.2 Literature .............................................................................................................................. 20
1.2.1 Airport Metropolis research.............................................................................................. 20
1.2.2 Economic development research ...................................................................................... 21
1.3 Research Aims and Objectives .............................................................................................. 22
1.3.1 Contribution ...................................................................................................................... 23
1.4 Methodology ........................................................................................................................ 24
1.4.1 Scope ................................................................................................................................. 25
1.5 Structure of the Thesis .......................................................................................................... 25
1.6 Conclusion ............................................................................................................................ 27
2 DECISION OF LOCATION RESEARCH ................................................................ 29
2.1 Introduction .......................................................................................................................... 29
2.2 Defining Infrastructure .......................................................................................................... 35
2.3 Theories ................................................................................................................................ 38

Table of Contents V
2.3.1 Location theory ................................................................................................................. 38
2.3.2 Creative class theory ......................................................................................................... 43
2.3.3 Application of theories to research ................................................................................... 45
2.4 Companies’ Decision of Location: Existing Research ............................................................. 46
2.4.1 Physical infrastructure ...................................................................................................... 49
2.4.1.1 Airports and air traffic .................................................................................................. 63
2.4.2 Social infrastructure .......................................................................................................... 67
2.5 Gaps in the Existing Literature .............................................................................................. 77
2.6 Conclusions ........................................................................................................................... 78
3 THE AIRPORT METROPOLIS’ REGION ............................................................ 81
3.1 lntroduction .......................................................................................................................... 81
3.2 Airport-Centred Urban Developments .................................................................................. 82
3.2.1 Airport City ........................................................................................................................ 86
3.2.2 Airport corridor, Aerotropolis and airport metropolis region......................................... 101
3.2.3 Other concepts: airea, aeroSCAPE, aviapolis, airfront .................................................... 109
3.2.4 Gaps in the existing literature ......................................................................................... 110
3.3 Conclusion .......................................................................................................................... 112
4 METHODOLOGY .................................................................................................... 113
4.1 Introduction ........................................................................................................................ 113
4.2 Methodology and Methods ................................................................................................ 116
4.2.1 Paradigm and methodology considerations ................................................................... 117
4.2.2 Research design .............................................................................................................. 119
4.2.3 Justification for data collection methods ........................................................................ 121
4.3 Research Process ................................................................................................................ 130
4.3.1 Ethics ............................................................................................................................... 130
4.3.2 Survey .............................................................................................................................. 130
4.3.2.1 Data collection experience ......................................................................................... 131
4.3.2.2 Data analysis ............................................................................................................... 131
4.3.2.3 Data limitations .......................................................................................................... 132
4.3.3 Interviews ........................................................................................................................ 132
4.3.3.1 Fieldtrips ..................................................................................................................... 133
4.3.3.2 Interview environment ............................................................................................... 134
4.3.3.2.1 Middle East ....................................................................................................... 134
Abu Dhabi ........................................................................................................................ 135
Dubai ............................................................................................................................... 136
4.3.3.2.2 Germany ........................................................................................................... 137
Berlin ............................................................................................................................... 138
Frankfurt ......................................................................................................................... 139
4.3.3.2.3 Justification for the choice of the context regions ........................................... 140
4.3.3.3 Data collection experience ......................................................................................... 144
4.3.3.3.1 Pilot-study ......................................................................................................... 144
4.3.3.3.2 Interviews ......................................................................................................... 144
4.3.3.4 Data Analysis .............................................................................................................. 149
4.3.3.5 Data Limitations ......................................................................................................... 153

Table of Contents VI
4.4 Summary ............................................................................................................................ 153
5 THE ENVIRONMENT: AIRPORT CITIES AND AEROTROPOLI IN
GERMANY AND THE UNITED ARAB EMIRATES .................................................. 157
5.1 Introduction ........................................................................................................................ 157
5.2 Four Airport Metropolis’ Regions ........................................................................................ 159
5.2.1 Airport Metropolis’ Region: Dubai .................................................................................. 159
5.2.2 Airport Metropolis’ Region: Frankfurt ............................................................................ 164
5.2.3 Airport Metropolis’ Region: Abu Dhabi ........................................................................... 169
5.2.4 Airport Metropolis’ Region: Berlin .................................................................................. 176
5.2.5 Similarities and differences ............................................................................................. 181
5.3 Summary ............................................................................................................................ 185
6 RESEARCH RESULTS: BUSINESS PREFERENCES OF AIRPORTS AND THE
ROLE OF INFRASTRUCTURE FOR ECONOMIC DEVELOPMENT IN THE
AIRPORT METROPOLIS' REGION ............................................................................ 187
6.1 Introduction ........................................................................................................................ 187
6.2 Business Preferences of Airports Worldwide ...................................................................... 190
6.3 Comparison of the Importance of Physical and Social Infrastructure .................................. 191
6.4 Role of Airports as Economic Development Infrastructure .................................................. 193
6.5 Role of other Physical Infrastructure Elements for Companies’ Decision of Location .......... 207
6.6 Role of Social Infrastructure for Companies’ Decision of Location ...................................... 213
6.7 Spatial Infrastructure Requirements to Stimulate Economic Development in the Airport
Metropolis’ Region....................................................................................................................... 222
6.7.1 Parking possibilities ......................................................................................................... 226
6.7.2 Road access ..................................................................................................................... 228
6.7.3 Public transport ............................................................................................................... 233
6.7.4 Airports ........................................................................................................................... 234
6.7.5 Community service facilities ........................................................................................... 236
6.7.6 Rail access ....................................................................................................................... 237
6.7.7 Health facilities ................................................................................................................ 239
6.7.8 Leisure facilities ............................................................................................................... 241
6.7.9 Education facilities .......................................................................................................... 243
6.7.10 Religious facilities ....................................................................................................... 245
6.7.11 Summary .................................................................................................................... 246
6.8 Summary and Conclusions .................................................................................................. 247
7 DECISION OF LOCATION (IN AN ENVIRONMENT OF AN AIRPORT CITY
OR AEROTROPOLIS) .................................................................................................... 251
7.1 Introduction ........................................................................................................................ 251
7.2 Understanding the Decision-Making Process ...................................................................... 252

Table of Contents VII
7.3 Understanding the Concept of Centrality, Accessibility and Connectivity ........................... 263
7.4 Understanding the Influence of Entrepreneurship .............................................................. 266
7.5 Understanding the Influence of the Region ......................................................................... 268
7.6 Understanding the Influence of the Workforce ................................................................... 269
7.7 Understanding the Influence of Culture .............................................................................. 271
7.8 Summary and Conclusion .................................................................................................... 273
8 CONCLUSION .......................................................................................................... 277
8.1 Introduction ........................................................................................................................ 277
8.2 Research Findings ............................................................................................................... 282
8.2.1The role of airports for economic development in the Airport Metropolis’ Region ............. 283
8.2.2 The role of other physical infrastructure elements for economic development in the Airport
Metropolis’ Region............................................................................................................... 287
8.2.3 The role of social infrastructure for economic development in the Airport Metropolis’
Region .................................................................................................................................. 289
8.2.4 Spatial distribution of infrastructure elements for economic development in the Airport
Metropolis’ Region............................................................................................................... 293
8.2.5Further findings for decision of location in the Airport Metropolis’ Region ......................... 296
8.3 Contribution ....................................................................................................................... 298
8.3.1 Theoretical contribution ................................................................................................. 298
8.3.2 Contribution to practice .................................................................................................. 299
8.4 Limitations .......................................................................................................................... 301
8.5 Implications for Methodology ............................................................................................. 301
8.6 Future Research .................................................................................................................. 301
8.7 Some Final Remarks ............................................................................................................ 303
9 REFERENCES .......................................................................................................... 305
10 APPENDICES ...................................................................................................... 323
10.1 Email Survey ................................................................................................................... 323
10.2 Company Interviews ....................................................................................................... 327
10.3 Interviews Economic Development Agencies ................................................................. 339
10.4 SPSS Codebook ............................................................................................................... 348
10.5 Interview Results ............................................................................................................ 354

Table of Contents VIII