Corruption and airport efficiency: A study on Asian airports

This paper evaluates the relationship between corruption and operational efficiency of airports in Asia, by analyzing a panel dataset of 26 Asian airports over the 2003–2019 period. Our estimation results for Asia confirm the findings for other regions that there exists a negative association between the operational efficiencies of airports and the corruption level in the country. Airports owned, operated and/or managed by government corporations (100% government) are the most affected, in that they experience significant loss of efficiency when located in a high corruption country. The residual variable factor productivity (RVFP) from the Air Transport Research Society (ATRS) airport benchmarking reports is used as measure of airport operational efficiency. Regression analyses are applied to evaluate the relationship between airport efficiency and corruption. The results are robust to alternative corruption indexes. The findings of this paper have important policy implications for the management of large public infrastructure projects and airport governance reforms in Asia.