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The impact of national macro-environment exogenous variables on airport efficiency

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  • Chaouk, Mohammed
  • Pagliari, Dr Romano
  • Moxon, Richard

Abstract

Our paper tests the extent to which airport efficiency is affected by national macro-environmental factors. The literature on airport performance measurement is extensive but has tended to focus mainly on estimating the effects on efficiency from what are mostly endogenous variables. We undertake a two-stage analysis of 59 international airports observations in the Europe and Asia-Pacific regions. The first stage involves the use of Data Envelopment Analysis (DEA) to measure the efficiency of these airports. This is followed by a second stage, where we use a Truncated Regression model that incorporates the Simar and Wilson bootstrapping technique to test the extent to which a set of macro-environmental factors affect airport efficiency. Results reveal that a state's air transport sector output, institutional quality and robustness, the macro-economic environment, safety and security, and human development, all have a significant influence on the performance of airports. The result of this study fills the gap in the literature related to the non-discretionary variables affecting the performance of airports. It also suggests that policymakers and airport managers consider the identified factors when benchmarking airports.

Suggested Citation

  • Chaouk, Mohammed & Pagliari, Dr Romano & Moxon, Richard, 2020. "The impact of national macro-environment exogenous variables on airport efficiency," Journal of Air Transport Management, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:jaitra:v:82:y:2020:i:c:s0969699719302583
    DOI: 10.1016/j.jairtraman.2019.101740
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