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Service Productivity and Biased Technological Change of Domestic Airports in Taiwan

ABSTRACT The aim of this article is to investigate service productivity change and its components at selected domestic airports in Taiwan. Based on the decomposition, we isolate the contributions of magnitude change and biased changes to the physical technology change. The results reveal that service productivity growth is at the rate of about 1.3% per year on average, and is accompanied by quality productivity growth of 19.5%, while physical productivity declined −14.4%. The decomposition of physical technology change shows that declining growth results from the pure magnitude regress (−8.4%) with slight output biased technological progress (2.2%).