The spatial dimension of competition among airports at the worldwide level: a spatial stochastic frontier analysis

Angela Bergantino, Mario Intini and Nicola Volta

European Journal of Operational Research, 2021, vol. 295, issue 1, 118-130

Abstract: This paper analyses the potential impact of airport competition on technical efficiency by applying the spatial stochastic frontier approach (SSFA) rather than the traditional model (SFA). The SSFA allows for isolating the cross-sectional spatial dependence and evaluating the role of intangible factors in influencing an airport's economic performance through the inclusion of the distance matrix and the shared destinations matrix calibrated for different distances. By analysing the statistical differences between the traditional and the spatial model, it is possible to identify the competition effects. This study includes 206 airports at the worldwide level. The results show the existence of the spatial component: we detected a different influence of airports’ efficiency levels according to the geographical distances. This could have not been captured by the traditional SFA. We conclude that when incorporating spatial spillover effects into the airport efficiency analysis, the efficiency dynamics are strongly dependent on the spatial distance among airports.

Keywords: Transportation; Major airports; Efficiency analysis; Spatial interaction; Airport competition (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S037722172100148X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:295:y:2021:i:1:p:118-130

DOI: 10.1016/j.ejor.2021.02.035

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().