Estimating indices of airport productivity in Greater China

In this paper, we measure the productivity changes of 30 airports in Greater China during 2000–2006 by computing their Malmquist productivity indices using parametric output distance functions. On average, the productivity of airports grew at 10.3% annually over our period. In addition, decomposing the Malmquist index did not provide evidence supporting any “catching-up” in technical efficiency between regional airports and major hubs.

► We show that the productivity of Greater China airports grew at 10.3% annually.
► There was no evidence supporting any “catching-up” in technical efficiency between regional airports and major hubs.
► Taipei and Hong Kong should invest more in infrastructure to raise their productivity.
► Macau should aim at efficiency improvements.