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Japanese-airport benchmarking with the DEA and endogenous-weight TFP methods: testing the criticism of overinvestment in Japanese regional airports

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  • Yoshida, Yuichiro
  • Fujimoto, Hiroyoshi

Abstract

As aviation demand increased constantly along with the rapid economic growth in Japan and surrounding East Asian countries over the last several decades, Japanese government promoted airport construction since 1950s. However, the recent change in the economic background has made rise to a criticism toward the inefficient public investment, especially the transportation infrastructure. In this criticism, it has been argued that some of the small regional airports are indeed suffering the issue of overinvestment. Thus this paper attempts to verify the validity of such criticism by statistically measuring the efficiency of Japanese airports and conducting comparative analysis. For this objective, the paper employs two distinct methods namely data-envelopment analysis and endogenous-weight TFP methods. The results from these methods consistently indicates that the efficiency of regional airports in mainland Japan are lower than others, and that those airports constructed in the 1990s are relatively inefficient.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

Volume (Year): 40 (2004)
Issue (Month): 6 (November)
Pages: 533-546

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Handle: RePEc:eee:transe:v:40:y:2004:i:6:p:533-546

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Related research

Keywords: Total factor productivity Data envelopment analysis Airport efficiency;

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Cited by:
  1. Barros, Carlos Pestana, 2008. "Technical efficiency of UK airports," Journal of Air Transport Management, Elsevier, vol. 14(4), pages 175-178.
  2. Yu, Ming-Miin & Chern, Ching-Chin & Hsiao, Bo, 2013. "Human resource rightsizing using centralized data envelopment analysis: Evidence from Taiwan's Airports," Omega, Elsevier, vol. 41(1), pages 119-130.
  3. Malighetti, G & Martini, G & Paleari, S & Redondi, R, 2009. "The Impacts of Airport Centrality in the EU Network and Inter- Airport Competition on Airport Efficiency," MPRA Paper 17673, University Library of Munich, Germany.
  4. Pestana Barros, Carlos & Managi, Shunsuke & Yoshida, Yuichiro, 2010. "Productivity growth and biased technological change in Japanese airports," Transport Policy, Elsevier, vol. 17(4), pages 259-265, August.
  5. Oum, Tae Hoon & Pathomsiri, Somchai & Yoshida, Yuichiro, 2013. "Limitations of DEA-based approach and alternative methods in the measurement and comparison of social efficiency across firms in different transport modes: An empirical study in Japan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 16-26.
  6. repec:ise:isegwp:wp222009 is not listed on IDEAS
  7. Barros, Carlos Pestana, 2011. "Cost efficiency of African airports using a finite mixture model," Transport Policy, Elsevier, vol. 18(6), pages 807-813, November.
  8. Bergamini, Elisabetta & Gitto, Simone & Mancuso, Paolo, 2006. "The performance of Italian airports," MPRA Paper 35790, University Library of Munich, Germany.
  9. Gitto, Simone & Mancuso, Paolo, 2010. "Airport efficiency: a DEA two stage analysis of the Italian commercial airports," MPRA Paper 34366, University Library of Munich, Germany, revised 10 Oct 2010.
  10. Barros, Carlos P. & Bin Liang, Qi & Peypoch, Nicolas, 2013. "The efficiency of French regional airports: An inverse B-convex analysis," International Journal of Production Economics, Elsevier, vol. 141(2), pages 668-674.
  11. Barros, Carlos Pestana, 2008. "Technical change and productivity growth in airports: A case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(5), pages 818-832, June.
  12. Curi, Claudia & Gitto, Simone & Mancuso, Paolo, 2011. "New evidence on the efficiency of Italian airports: A bootstrapped DEA analysis," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 84-93, June.
  13. Assaf, A. George & Gillen, David & Barros, Carlos, 2012. "Performance assessment of UK airports: Evidence from a Bayesian dynamic frontier model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 603-615.
  14. Adler, Nicole & Ülkü, Tolga & Yazhemsky, Ekaterina, 2013. "Small regional airport sustainability: Lessons from benchmarking," Journal of Air Transport Management, Elsevier, vol. 33(C), pages 22-31.
  15. repec:ise:isegwp:wp222008 is not listed on IDEAS
  16. Tovar, Beatriz & Martín-Cejas, Roberto Rendeiro, 2009. "Are outsourcing and non-aeronautical revenues important drivers in the efficiency of Spanish airports?," Journal of Air Transport Management, Elsevier, vol. 15(5), pages 217-220.
  17. Barros, Carlos Pestana, 2008. "Airports in Argentina: Technical efficiency in the context of an economic crisis," Journal of Air Transport Management, Elsevier, vol. 14(6), pages 315-319.
  18. repec:ise:isegwp:wp102008 is not listed on IDEAS
  19. repec:ise:isegwp:wp252008 is not listed on IDEAS
  20. Martini, Gianmaria & Manello, Alessandro & Scotti, Davide, 2013. "The influence of fleet mix, ownership and LCCs on airports’ technical/environmental efficiency," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 37-52.
  21. Martín, Juan Carlos & Rodríguez-Déniz, Héctor & Voltes-Dorta, Augusto, 2013. "Determinants of airport cost flexibility in a context of economic recession," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 70-84.
  22. Gitto, Simone & Mancuso, Paolo, 2012. "Bootstrapping the Malmquist indexes for Italian airports," International Journal of Production Economics, Elsevier, vol. 135(1), pages 403-411.
  23. De Nicola, Arianna & Gitto, Simone & Mancuso, Paolo, 2013. "Airport quality and productivity changes: A Malmquist index decomposition assessment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 58(C), pages 67-75.
  24. Gitto, Simone & Mancuso, Paolo, 2009. "Productivity change in Italian airports," MPRA Paper 34367, University Library of Munich, Germany.
  25. Sebastián Lozano & Ester Gutiérrez, 2011. "Efficiency Analysis and Target Setting of Spanish Airports," Networks and Spatial Economics, Springer, vol. 11(1), pages 139-157, March.

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