Study on the subsidy efficiency of small and medium-sized airports in China based on social economic impact

Abstract

Existing studies on airport efficiency predominantly emphasize operational performance, often overlooking airports' social responsibilities as public infrastructure. This study adopts a socioeconomic impact analysis perspective to evaluate the subsidy efficiency of 56 small and medium-sized airports in China from 2015 to 2019, offering insights to improve the interaction between airport operations and socioeconomic development. The study consists of two main components. Firstly, Network Data Envelopment Analysis (NDEA) decomposes the subsidy process into two sub-processes: stimulating air transport volume and enhancing socioeconomic development, enabling a detailed efficiency assessment. Secondly, a panel data regression model is utilized to analyze the key factors influencing subsidy efficiency. The efficiency assessment highlights that the weak correlation between airport operations and regional economic development is the primary barrier to improving subsidy efficiency. Additionally, the results reveal significant geographic disparities, with airports in eastern regions exhibiting higher subsidy efficiency than those in the west. The panel regression analysis identifies several factors with substantial positive effects on subsidy efficiency, including the number of airlines and connected destinations, the city's population size, and highway passenger traffic. To the best of our knowledge, this study is among the first to evaluate airport subsidy efficiency, specifically focusing on social economic outcomes, particularly for small and medium-sized airports. By extending the scope of existing research on airport efficiency evaluation, this study contributes to a deeper understanding of the role of subsidies in supporting smaller airports and their relationship with social development.