Technical efficiency and productivity change analysis: A case study of the regional and local airports in Thailand

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Technical efficiency and productivity change analysis: A case study of the regional and local airports in Thailand

Chutiphongdech, Thanavutd / Vongsaroj, Rugphong

Highlights • The performance of Thailand’s regional and local airports was examined. • Regional and local airports in Thailand were technically inefficient and not producing at the optimal scale of production during the study period. • Productivity change during 2009–2018 showed positive change. • Privatized airports seemed to have better performance than public airports.

Abstract This study investigates airport performance in terms of efficiency and productivity change using regional and local airports in Thailand as a case study. The study employs data envelopment analysis and the Malmquist productivity index to analyze the technical efficiency scores and capture the total productivity change during 2009–2018 for 31 airports in Thailand. Using the BCC–data envelopment analysis–Malmquist model with an output-oriented framework, we found that most regional and local airports in Thailand operated technically inefficiently during the study period, whereas the total productivity change of most airports showed progress (around 8.4%). Decompositions of the Malmquist productivity index reported a positive change in technical efficiency and airport technology. This study also presents policy recommendations arising from the case study for airport practitioners.