In an era where globalization shapes the very fabric of economic landscapes, the role of physical connectivity remains more critical than ever, especially in determining the geographic spread of multinational corporations (MNCs). A groundbreaking study, recently published in Nature Cities, sheds new light on how the intricate web of global air travel networks profoundly influences where these formidable firms plant their international flags. By leveraging an unprecedented dataset that merges the operational footprints of more than 7.5 million firms with a comprehensive map of 400,000 international flight routes spanning three decades, researchers unveil compelling evidence that air connectivity is not just a facilitator but a strategic determinant of MNC foreign investment decisions.
At the heart of this research is a nuanced exploration of air network topology—the structural layout and connectivity of global flights—and its role in shaping subsidiary location choices. The study reveals a strong correlation between the reduction in layovers, or intermediate flight stops, and the increased presence of MNC subsidiaries in destination cities. This suggests that ease of access, marked by direct flight availability, significantly enhances a city’s attractiveness for global firms aiming to minimize time costs and improve operational efficiency.
The researchers also delve into sector-specific sensitivities, highlighting that firms in industries heavily reliant on face-to-face interactions—particularly knowledge-based service sectors such as technology, finance, and consulting—exhibit the greatest responsiveness to air connectivity improvements. This finding underscores the ongoing importance of human contact in an increasingly digitized economy, where despite technological advances, certain critical business functions demand frequent and efficient travel between hubs.
Most striking in the analysis is the prominence of eigenvector centrality as the leading predictor of multinational subsidiary locations, surpassing traditional metrics such as city population or regional economic output. Eigenvector centrality, a measure derived from network theory, captures a city’s embeddedness and influence within the global air traffic web by factoring in not just the number of direct connections but also the connectivity of those linked nodes themselves. Put simply, cities that are well-connected to other highly connected cities serve as vital hubs, offering MNCs enhanced opportunities for coordination and resource flow across borders.
The dataset employed in this research encompasses years 1993 to 2023, a period marked by massive evolutions in both air travel infrastructure and multinational corporate strategies. By integrating high-resolution firm-level data with granular flight route information, the study achieves a level of analytical precision rarely seen in global economic geography. This approach allows for dynamic temporal examination, showcasing how changes in air network topology, such as the introduction of new direct flights or expansion of airport capacities, translate into tangible shifts in MNC subsidiary presence.
A notable contribution of this work is its elucidation of the interplay between physical connectivity and economic activity—an area often overshadowed by discussions around digital communication technologies. While remote work and virtual meetings have reshaped parts of corporate life, the authors emphasize that physical travel, especially via efficient air networks, remains indispensable for sustaining the complex coordination required by global firms. Their findings suggest that geographical advantages embedded in air connectivity confer a lasting competitive edge to cities vying for multinational presence.
The emergent patterns reveal additional layers of complexity regarding spatial hierarchies within the global economy. Air network centralities tend to privilege traditional global cities like New York, London, and Tokyo, but importantly also spotlight rising hubs that have strategically invested in airport infrastructure and route development. These ascending nodes are reshaping multinational subsidiary geography, signaling a potential redistribution of economic influence facilitated directly by transportation improvements.
Moreover, the research carefully differentiates between mere airport presence and network quality. It is not enough for a city to have an international airport; the strategic connectivity—the city’s ability to serve as an efficient gateway to other significant economic centers—dictates MNC location decisions. This subtle but critical distinction underscores the importance of considering the topology and qualitative attributes of air networks rather than simplistic measures like the number of flights or passengers alone.
From a policy perspective, the implications are profound. Urban planners and national governments aiming to attract foreign investment must recognize that enhancing air connectivity and reducing layover times represent powerful levers for economic development. Investments in direct flight routes, expanded airport capacities, and the strengthening of hub status can translate directly into increased multinational subsidiary footprints, boosting local economies and integrating cities more deeply into global value chains.
The study’s methodological sophistication extends beyond static correlation analysis. By adopting robust econometric frameworks, including fixed-effects models and instrumental variable approaches, the authors successfully isolate the causal impacts of air connectivity from confounding factors such as economic policies and regional demographics. This rigorous approach lends greater confidence that improvements in air network centrality are indeed driving the spatial patterns of MNC subsidiaries rather than merely coinciding with them.
At the sectoral level, the differentiation made between face-to-face reliant industries and those less dependent on physical interactions opens fresh avenues for targeted urban economic strategies. Cities seeking to attract firms operating in knowledge-intensive sectors would particularly benefit from prioritizing air connectivity enhancements—thus facilitating the frequent, high-quality interpersonal engagements these businesses demand.
Importantly, this research contributes to the broader theoretical discourse on how infrastructure and networks influence global economic geography. It challenges deterministic views that digital connectivity alone redefines firm location strategies and instead highlights the intertwined roles of physical and virtual linkages. Given the temporal span of data, the study offers a compelling narrative about continuity and change—the persistent relevance of air networks amidst evolving technological landscapes.
The findings also invite reflection on resilience and adaptability in global networks. As cities navigate disruptions such as pandemics, geopolitical tensions, and environmental challenges, understanding the structural centrality within air networks can inform strategies to maintain or regain attractiveness for multinational firms. Robust, well-connected air hubs may serve as critical nodes ensuring stability in global operations.
Finally, this study pushes forward the frontier of data integration in economic geography, showcasing the transformative potential of combining large-scale firm-level information with detailed transport network data. Such interdisciplinary approaches are paving the way for more nuanced understandings of global economic dynamics, informing both academic debates and practical policymaking aimed at fostering economic globalization that is both efficient and equitable.
Subject of Research:
Air connectivity and its influence on the location patterns of multinational corporations’ foreign subsidiaries, analyzed through the lens of global air network topology.
Article Title:
Air connectivity boosts urban attractiveness for global firms.
Article References:
Amico, A., Duarte, F., Liao, WC. et al. Air connectivity boosts urban attractiveness for global firms. Nat Cities (2026). https://doi.org/10.1038/s44284-025-00361-4
Image Credits:
AI Generated
DOI:
https://doi.org/10.1038/s44284-025-00361-4
Tags: air connectivity and multinational corporationsair network topology and subsidiary locationsdirect flights enhance city attractivenesseconomic globalization and firm locationforeign investment decisions of firmsglobal air travel networks impactmapping international flight routesoperational efficiency in international businesssignificance of layover reductionstrategic determinants of business expansionstudy on air travel and investmentsurban appeal to global firms
