From Cost Efficiency to Economic Efficiency: The Mediating Role of Economic Efficiency in the Privatization of Government Airports and Its Contribution to Economic Growth

This article investigates the role of economic efficiency as a mediator in the relationship between cost efficiency and the success of government airport privatization. As governments seek to optimize public sector operations through privatization, particularly in high-demand sectors such as airports, the importance of enhancing cost efficiency becomes evident. However, the shift from mere cost savings to broader economic benefits hinges on the mediating role of economic efficiency. This study explores how cost-saving strategies, including outsourcing and Total Quality Management (TQM) practices, contribute not only to improved operational outcomes but also to economic efficiency, defined by optimal resource allocation and enhanced long-term economic growth. Drawing on theoretical frameworks and empirical findings, the research demonstrates that while cost efficiency directly influences operational performance, it is economic efficiency—achieved through the strategic application of private sector practices—that ultimately drives sustainable economic outcomes. By examining multiple case studies, including insights from recent literature on privatization in the airport sector, this paper highlights how economic efficiency fosters investment, job creation, and infrastructure development. The findings suggest that economic efficiency is a crucial mediator, bridging the gap between cost efficiency and the success of airport privatization, with profound implications for public sector transformation in the era of globalization and technological innovation.Be noticed please:The text is single-spaced; uses a 12-point font; employs italics, rather than underlining (except with URL addresses); and all illustrations, figures, and tables are placed within the text at the appropriate points, rather than at the end.