Previous research has indicated that liberal air services agreements (ASAs) lead to more passengers. Using time-series regression models, this study extends those findings by looking more closely at the evolving ASAs between the United States and China during 1996–2009. Our results indicate that while liberal ASAs generally lead to increased passengers, the extent of this impact depends on the general state of liberalization when the agreement is signed. In addition, this study shows that the benefits of liberalization may not be evenly apportioned between the two countries of carriers.

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