Abstract
Faced with severe competition pressure from rival, numerous countries have already adopted privatization in order to stimulate productivity and improve operation efficiency of air cargo terminals. In Taiwan, the privatization of C.K.S. air cargo terminal has been launched in 2000. This study applies the Data Envelope Analysis methodology and Malmquist production index to analyze efficiency and productivity change of C.K.S. air cargo termination before and after privatization. Empirical results indicate privatization improves efficiency of terminals and that the productivity change relies on technology innovation. It is worth mentioning that terminal privatization experienced initial decline followed by latter increase trend. The reason could be the economic declines and terrorist attacks in 2002 caused decline in efficiency and stabilized in 2004. In addition, privatization on organization management and technology transfer requiring transition time to show effects could also be possible reason.
