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Measuring the technical efficiency of airports in Latin America

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  • Perelman, Sergio
  • Serebrisky, Tomas

Abstract

This paper studies the technical efficiency of airports in Latin America. The evolution of productive efficiency in the region has seldom been studied, mainly due to lack of publicly available data. Relying on a unique dataset that was obtained through questionnaires distributed to airport operators, the authors use Data Envelopment Analysis methods to compute an efficient production frontier and compare the technical efficiency of Latin American airports relative to airports around the world. In a second stage, they estimate a truncated regression to study the drivers of observed differences in airport efficiency. According to the results, institutional variables (private/public operation), the socioeconomic environment (level of gross domestic product), and airport characteristics (hub airport, share of commercial revenues) matter in explaining airport productive efficiency. Finally, the authors compute total factor productivity changes for Latin American airports for 1995-2007. The region has implemented a wide variety of private sector participation schemes for the operation of airports since the mid 1990s. The results show that private operators have not had higher rates of total factor productivity change.

Suggested Citation

  • Perelman, Sergio & Serebrisky, Tomas, 2010. "Measuring the technical efficiency of airports in Latin America," Policy Research Working Paper Series 5339, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5339
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    References listed on IDEAS

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    3. Chris Aulich & Mark Hughes, 2013. "Privatizing Australian Airports: Ownership, Divestment and Financial Performance," Public Organization Review, Springer, vol. 13(2), pages 175-184, June.
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    6. James A. Adeniran & Binuyo O. Adekunle, 2016. "Is Service Quality a Correlate of Customer Satisfaction? Evidence from Nigerian Airports," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 8(6), pages 128-140, December.
    7. Edgar Ferreira Damacena & Peter Fernandes Wanke & Henrique Luiz Correa, 2016. "Infrastructure expansion in Brazilian airports: slack analysis using a distance friction minimization approach," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(2), pages 181-198, June.
    8. Volodymyr Bilotkach & Joseph Clougherty & Juergen Mueller & Anming Zhang, 2012. "Regulation, privatization, and airport charges: panel data evidence from European airports," Journal of Regulatory Economics, Springer, vol. 42(1), pages 73-94, August.
    9. Zhang, Anming & Czerny, Achim I., 2012. "Airports and airlines economics and policy: An interpretive review of recent research," Economics of Transportation, Elsevier, vol. 1(1), pages 15-34.
    10. Antonio Estache & Caroline Philippe, 2012. "The Impact of Private Participation in Infrastructure in Developing Countries: Taking Stock of about 20 Years of Experience," Working Papers ECARES ECARES 2012-043, ULB -- Universite Libre de Bruxelles.
    11. Pavlyuk, Dmitry, 2012. "Airport Benchmarking and Spatial Competition: a Critical Review," MPRA Paper 43391, University Library of Munich, Germany.
    12. 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.
    13. See, Kok Fong & Li, Fei, 2015. "Total factor productivity analysis of the UK airport industry: A Hicks-Moorsteen index method," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 1-10.
    14. Voltes-Dorta, Augusto & Pagliari, Romano, 2012. "The impact of recession on airports' cost efficiency," Transport Policy, Elsevier, vol. 24(C), pages 211-222.
    15. Kan Tsui, Wai Hong & Balli, Hatice Ozer & Gilbey, Andrew & Gow, Hamish, 2014. "Operational efficiency of Asia–Pacific airports," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 16-24.
    16. Zhang, Baocheng & Wu, Hao & Yang, Xinsheng & Zhai, Wenpeng & Xia, Qingjun & Li, Yafei, 2014. "An estimation of returns to scale of airport airsides under multiple optimal solutions in DEA," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 149-156.
    17. Pavlyuk, Dmitry, 2016. "Implication of spatial heterogeneity for airports' efficiency estimation," Research in Transportation Economics, Elsevier, vol. 56(C), pages 15-24.
    18. Fernández, Xosé Luis & Coto-Millán, Pablo & Díaz-Medina, Benito, 2018. "The impact of tourism on airport efficiency: The Spanish case," Utilities Policy, Elsevier, vol. 55(C), pages 52-58.
    19. Coto-Millán, Pablo & Casares-Hontañón, Pedro & Inglada, Vicente & Agüeros, Manuel & Pesquera, Miguel à ngel & Badiola, Alfonso, 2014. "Small is beautiful? The impact of economic crisis, low cost carriers, and size on efficiency in Spanish airports (2009–2011)," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 34-41.
    20. Vogel, Hans-Arthur & Graham, Anne, 2013. "Devising airport groupings for financial benchmarking," Journal of Air Transport Management, Elsevier, vol. 30(C), pages 32-38.
    21. Seock-Jin Hong & Minjun Jeon, 2019. "The Technical Efficiency of French Regional Airports and Low-Cost Carrier Terminals," Sustainability, MDPI, vol. 11(18), pages 1-15, September.
    22. Cifuentes-Faura, Javier & Faura-Martínez, Ursula, 2023. "Measuring Spanish airport performance: A bootstrap data envelopment analysis of efficiency," Utilities Policy, Elsevier, vol. 80(C).
    23. Wanke, Peter & Barros, C.P. & Nwaogbe, Obioma R., 2016. "Assessing productive efficiency in Nigerian airports using Fuzzy-DEA," Transport Policy, Elsevier, vol. 49(C), pages 9-19.

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    Keywords

    Airports and Air Services; Transport Economics Policy&Planning; Infrastructure Economics; Export Competitiveness; Knowledge for Development;
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