Does high-speed rail development affect airport productivity? Evidence from China and Japan

Abstract

This paper examines the effects of HSR development on airport technical efficiency and the labor productivity at airports. Existing literature mainly focuses on the impacts of HSR on passenger traffic. In addition to passengers, HSR development may influence airports' other outputs such as cargo and flight movements together with various inputs. These inputs and outputs collectively determine airports' technical efficiency. With access to a dataset consisting of 46 Chinese airports and 16 Japanese airports from 2007 to 2015, the paper firstly adopts both the standard two-stage Data Envelopment Analysis (DEA) and double bootstrap methods to evaluate the impacts of HSR development on airports’ technical efficiency. We then evaluate the effects of HSR on airport labor productivity which is measured by both work-load units per employee and aircraft movements per employee. Our main findings indicate that HSR development relates to a decline in airport efficiency. Airports located in cities that have better connectivity or accessibility in the HSR network suffer more efficiency loss than the others. It is also observed that the locational advantage of HSR stations relative to airports is negatively associated with airport efficiency. By contrast, good intermodal linkage between the airport and its nearest HSR station is positively correlated with airport efficiency. Furthermore, the study reports different results between China and Japan with respect to the effects of HSR on labor productivity.