Abstract
The paper looks at the technical efficiency of Chinese airports using multi-output stochastic input distance function analysis. This method provides a statistical test of scope economies to investigate the contribution of air cargo transport to airport efficiency. Our findings confirm the presence of scope economies in air passenger and air cargo transport among airports in China. We compare and contrast these results with results obtained from single-output stochastic production frontier analysis in which the effect of scope economies is not included. Our results indicate that the presence of scope economies significantly affects the estimation of technical efficiency, thus implying different efficiency rankings among airports in China.
| Original language | English |
|---|---|
| Pages (from-to) | 324-329 |
| Number of pages | 6 |
| Journal | Journal of Air Transport Management |
| Volume | 15 |
| Issue number | 6 |
| DOIs | |
| Publication status | Published - 1 Nov 2009 |
Bibliographical note
The authors would like to thank two anonymous reviewers for their valuable comments and suggestions. An earlier version of this paper was presented at the Centre of Aviation Safety Technology of the CAAC and at the ATRS 2007 Annual Conference, and the authors are also grateful to the conference participants for their advice. Any errors are of course ours. The excellent research assistance provided by the late Ken Wan is gratefully acknowledged.Funding
We gratefully acknowledge the research support of the Aviation Policy and Research Center and the Li and Fung Center for Supply Chain Management and Logistics at the Chinese University of Hong Kong.
Keywords
- Scope economies
- Stochastic input distance function
- Technical efficiency