IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v12y2006i5p261-266.html
   My bibliography  Save this article

Factor substitution and complementarity in the Asia airport industry

Author

Listed:
  • Low, Joyce M.W.
  • Tang, Loon Ching

Abstract

This paper measures and analyzes how the substitutability between various factors in Asia airports has changed over the years. Production factors are decomposed into capital and labor to examine the role of outsourcing in the recent years. The results reveal that outsourcing has emerged from being a substitute for labor and a complementary factor to capital in the late 1990s to become a substitute for both labor and capital. Increases in price elasticities and substitutability of labor and capital indicate that airports in Asia have become more adept at reacting to price changes.

Suggested Citation

  • Low, Joyce M.W. & Tang, Loon Ching, 2006. "Factor substitution and complementarity in the Asia airport industry," Journal of Air Transport Management, Elsevier, vol. 12(5), pages 261-266.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:5:p:261-266
    DOI: 10.1016/j.jairtraman.2006.07.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699706000548
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2006.07.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2001. "Relative efficiency of European airports," Transport Policy, Elsevier, vol. 8(3), pages 183-192, July.
    2. Berndt, Ernst R & Wood, David O, 1975. "Technology, Prices, and the Derived Demand for Energy," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 259-268, August.
    3. Gillen, David & Lall, Ashish, 1997. "Developing measures of airport productivity and performance: an application of data envelopment analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 261-273, December.
    4. Sumiko Asai, 2004. "Factor analysis of demand growth for information technology input in Japan," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(8), pages 687-694.
    5. Hooper, P.G & Hensher, D.A, 1997. "Measuring total factor productivity of airports-- an index number approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 249-259, December.
    6. Malcolm Abbott & Su Wu, 2002. "Total Factor Productivity and Efficiency of Australian Airports," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 244-260, September.
    7. Yoshida, Yuichiro, 2004. "Endogenous-weight TFP measurement: methodology and its application to Japanese-airport benchmarking," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(2), pages 151-182, March.
    8. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(4), pages 291-299.
    9. Oum, Tae Hoon & Yu, Chunyan & Fu, Xiaowen, 2003. "A comparative analysis of productivity performance of the world's major airports: summary report of the ATRS global airport benchmarking research report—2002," Journal of Air Transport Management, Elsevier, vol. 9(5), pages 285-297.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuan, Xue-Ming & Low, Joyce M.W. & Ching Tang, Loon, 2010. "Roles of the airport and logistics services on the economic outcomes of an air cargo supply chain," International Journal of Production Economics, Elsevier, vol. 127(2), pages 215-225, October.
    2. 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.
    3. Tolga Ülkü & Vahidin Jeleskovic & Jürgen Müller, 2014. "How scale and institutional setting explain the costs of small airports? -An application of spatial regression analysis," MAGKS Papers on Economics 201435, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    4. Martín, Juan Carlos & Voltes-Dorta, Augusto, 2011. "The econometric estimation of airports' cost function," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 112-127, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Myung Je Lee & Changhee Kim, 2018. "A network DEA aeronautical and non-aeronautical production model: an application to South Korea airports," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-12, December.
    2. Randrianarisoa, Laingo Manitra & Bolduc, Denis & Choo, Yap Yin & Oum, Tae Hoon & Yan, Jia, 2015. "Effects of corruption on efficiency of the European airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 65-83.
    3. Tae Hoon Oum & Katsuhiro Yamaguchi & Yuichiro Yoshida, 2011. "Efficiency Measurement Theory and its Application to Airport Benchmarking," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 13, Edward Elgar Publishing.
    4. Liu, Dan, 2016. "Measuring aeronautical service efficiency and commercial service efficiency of East Asia airport companies: An application of Network Data Envelopment Analysis," Journal of Air Transport Management, Elsevier, vol. 52(C), pages 11-22.
    5. 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.
    6. Voltes-Dorta, Augusto & Pagliari, Romano, 2012. "The impact of recession on airports' cost efficiency," Transport Policy, Elsevier, vol. 24(C), pages 211-222.
    7. 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.
    8. Paraschi, Elen Paraskevi & Georgopoulos, Antonios & Papatheodorou, Andreas, 2020. "Abiotic determinants of airport performance: Insights from a global survey," Transport Policy, Elsevier, vol. 85(C), pages 33-53.
    9. Gitto, Simone & Mancuso, Paolo, 2009. "Productivity change in Italian airports," MPRA Paper 34367, University Library of Munich, Germany.
    10. Oum, Tae H. & Yan, Jia & Yu, Chunyan, 2008. "Ownership forms matter for airport efficiency: A stochastic frontier investigation of worldwide airports," Journal of Urban Economics, Elsevier, vol. 64(2), pages 422-435, September.
    11. Abbott, Malcolm, 2015. "Reform and efficiency of New Zealand's airports," Utilities Policy, Elsevier, vol. 36(C), pages 1-9.
    12. 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.
    13. Paolo Malighetti & Gianmaria Martini & Stefano Paleari & Renato Redondi, 2007. "An Empirical Investigation on the Efficiency, Capacity Ownership of Italian Airports," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 157-188, January-F.
    14. Wang, Zhanwei & Song, Woon-Kyung, 2020. "Sustainable airport development with performance evaluation forecasts: A case study of 12 Asian airports," Journal of Air Transport Management, Elsevier, vol. 89(C).
    15. Ripoll-Zarraga, Ane Elixabete & Huderek-Glapska, Sonia, 2021. "Airports’ managerial human capital, ownership, and efficiency," Journal of Air Transport Management, Elsevier, vol. 92(C).
    16. Coto-Millán, Pablo & Inglada, Vicente & Fernández, Xose Luis & Inglada-Pérez, Lucía & Pesquera, Miguel Ángel, 2016. "The “effect procargo” on technical and scale efficiency at airports: The case of Spanish airports (2009–2011)," Utilities Policy, Elsevier, vol. 39(C), pages 29-35.
    17. Perelman, Sergio & Serebrisky, Tomas, 2010. "Measuring the technical efficiency of airports in Latin America," Policy Research Working Paper Series 5339, The World Bank.
    18. Chi-Lok, Andrew Yuen & Zhang, Anming, 2009. "Effects of competition and policy changes on Chinese airport productivity: An empirical investigation," Journal of Air Transport Management, Elsevier, vol. 15(4), pages 166-174.
    19. Bergamini, Elisabetta & Gitto, Simone & Mancuso, Paolo, 2006. "The performance of Italian airports," MPRA Paper 35790, University Library of Munich, Germany.
    20. Oum, Tae H. & Adler, Nicole & Yu, Chunyan, 2006. "Privatization, Corporatization, Ownership Forms and their Effects on the Performance of the World’s Major Airports," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 208026, Transportation Research Forum.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:12:y:2006:i:5:p:261-266. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.