Productivity Analysis of Major Airports in Korea Using Malmquist Productivity Indices

Abstract

Purpose - The purpose of this paper is to analyze the productivity of major airports in Korea using Malmquist Productivity Index methodology and draw implications for airport operations and planning through comparison with existing research results. Also, The results of this study confirm the academic differences between productivity and efficiency. The results of this study provide policy assistance such as attracting, expanding and relocating airports, and eliciting academic implications. Design/Methodology/Approach - We analyzed the productivity of airports in Korea by applying the Malmquist Productivity Index Analysis Methodology among DEA methodologies. Not only individual airports, but also group-specific airports were analyzed. In addition, we compared the results of airport efficiency studies analyzed using efficiency analysis methods such as CCR/BCC. Findings - The larger the airport, the more productive it is. The productivity of the base airport (large) and the productivity of the general airport (medium) and the general airport (small) is inversely proportional. These results resulted in significant differences from existing efficiency studies. For example, an airport with very low efficiency can be measured very high in productivity with only a little performance. In general, however, highly efficient airports also tended to have high productivity, which means there is a correlation between efficiency and productivity. Research Implications - This study identified the relationship between efficiency and productivity by studying productivity aspects, not efficiency. As a result, productivity analysis as well as efficiency analysis should be accompanied for proper airport evaluation. As a result of this study will help not only the operation of the airport but also the planning and expansion of the airport.