Technical efficiency analysis of major international airports in China: A stochastic frontier distance function approach

摘要

The objective of this paper is to measure the technical efficiency of 15 major international airports in China from 2007 to 2012. A stochastic frontier analysis output distance function is used in the study. This is the first Chinese airport study (to our knowledge) that uses non-aeronautical outputs in the measurement of airport efficiency. The results show that the major international airports in China, on average, must increase their efficiency by 34 per cent to reach the production frontier. In addition, aircraft size, airport listing and market size are found to have statistically significant effects on the airport efficiency level.