Measuring the Efficiency of Ariports in China with the DEA and Endogenous-Weight TFP Methods.

Abstract

The study of Chinese airport efficiency has been largely neglected, despite the Chinese civil aviation industry's recent impressive growth. The authors used the Data Envelopment Analysis and Endogenous-Weight Total Factor Productivity methods to study Chinese airport operational efficiency at 41 facilities, including regional airports, regional hubs, and international hubs. The study's empirical results show that among Chinese airports there is a statistically significant operational efficiency variation, and that strongly increasing returns to scale are exhibited by most Chinese airports, especially relatively efficient ones. Accordingly, a significant widening of the efficiency gap between Chinese airports may occur if investment is focused solely on efficient airports. A policy may need to be devised by the Civil Aviation Administration of China, therefore, not only to improve the operational efficiency of major airports, but also to maintain balanced regional airport development nationwide.