Total factor productivity analysis of the UK airport industry: A Hicks-Moorsteen index method

• Hicks-Moorsteen index method is used to estimate the TFP change in the UK airport industry.
• The productivity of the UK airport industry increased by 0.32 per cent per year from 2001 to 2009.
• Efficiency change contributing the most to the TFP growth.
• Private airports tend to be more productive than airports under public and mixed ownership.

This study examines the total factor productivity (TFP) change of the UK airport industry from 2001 to 2009 using a Hicks-Moorsteen index method. The results show that the industry experienced an average annual growth in TFP of 0.32 per cent with efficiency change being the main contributor to the TFP growth. We find that private UK airports enjoy slightly higher TFP growth than those in public or mixed ownership. Regulation and airport size are found to have statistically significant effects on the airport productivity level.