Measuring the productivity evolution of Chinese regional thermal power industries using global Malmquist-Luenberger productivity index

2018 ◽  
Vol 12 (2) ◽  
pp. 221-243
Author(s):  
Yao-yao Song ◽  
Hui-hui Liu ◽  
Xiao-xiao Liu ◽  
Guo-liang Yang
Keyword(s):  
Local Economic Development ◽  
Thermal Power ◽  
Policy Implications ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Chinese Government ◽  
Data Envelopment ◽  
Content Type ◽  
Close Relationship ◽  
Highly Correlated

Purpose This paper aims to measure Chinese regional thermal industries’ evolution. Design/methodology/approach This paper uses data envelopment analysis (DEA) and global Malmquist–Luenberger productivity (GMLP) index. Findings The results reveal that the development of Chinese thermal power industry varies significantly in different regions, and it is highly correlated with the level of local economic development. Although the change of technical efficiency and scale efficiency had different impacts on different regions from year to year, the overall GMLP index change shows a close relationship with the contemporaneous frontier shift. Practical implications The results indicate that the Chinese Government should make efforts to promote its policy implementations and regulations in thermal industries so that the contemporaneous frontier will shift toward the global technology frontier with more desirable outputs and less undesirable outputs. Originality/value As an application, this study uses DEA and GMLP index to measure the productivity of Chinese thermal industries in 30 Chinese provinces from 2006 to 2013. The results have the meaningful policy implications for decision makers in charge of Chinese thermal industries.

Dynamic and static analysis of agricultural productivity in China

2018 ◽  
Vol 10 (2) ◽  
pp. 293-312 ◽  
Author(s):  
Panpan Diao ◽  
Zhonggen Zhang ◽  
Zhenyong Jin
Keyword(s):  
Agricultural Production ◽  
Agricultural Productivity ◽  
Policy Implications ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Western Region ◽  
Content Type ◽  
Tfp Growth ◽  
The Western Region

Purpose The purpose of this paper is to analyze agricultural total factor productivity (TFP) and input redundancies in different regions of China, and to bring out the policy implications for improving efficiency in agricultural production as well as environment protection. Design/methodology/approach Based on the provincial panel data during 1995-2014, the agricultural productivity of China and its regional disparity are analyzed. First, the agricultural TFP and its decomposition are dynamically evaluated by means of data envelopment analysis-Malmquist productivity index. Second, the agricultural radial production efficiency in year 2014 and the input redundancy changes from 1995 to 2014 are measured based on the BCC-slacks-based measure model. Findings The results showed that the overall agricultural TFP of China grew 4.3 percent annually during 1995-2014, mainly as a result of technical progress. However, the declines of technical efficiency and scale efficiency slowed down the agricultural TFP growth. The TFP growth in the Western region and Central region far exceeded the Eastern region in last few years. In 2014, most effective decision-making units were in the Western region. The input redundancies in the agricultural production increased substantially after 2006, especially for the pesticide use amount, reservoir capacity and agricultural machinery power. Originality/value Combining the dynamic and static analyses, the paper fulfilled the study of China’s agricultural productivity and the input redundancies in recent years, and also presented the regional disparities.

Efficiency and productivity performance of zakat funds in Algeria

2018 ◽  
Vol 11 (3) ◽  
pp. 474-494 ◽  
Author(s):  
Chams-Eddine Djaghballou ◽  
Mohamed Djaghballou ◽  
Mousa Larbani ◽  
Azhar Mohamad
Keyword(s):  
Design Methodology ◽  
Operating Performance ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Efficiency Change ◽  
Output Data ◽  
Content Type ◽  
Efficiency And Productivity

Purpose The purpose of this study is to examine the efficiency and productivity performance of zakat funds managed by Directorates of Religious Affairs and Endowments (DRAE) in Algeria. Design/methodology/approach In this study, the authors employ data envelopment analysis and measure Malmquist Productivity Index for DRAE’s input and output data spanning from 2003 to 2013. Findings The authors find that total factor productivity has increased sharply for all zakat funds, mainly due to a technical rather than efficiency change. Further decomposition of the efficiency change into its pure technical and scale efficiency components suggests that the pure efficiency is a more important source of efficiency change than the scale efficiency component, meaning that zakat funds rely on technical aspects to gain efficiency. Originality/value The findings of this study are expected to contribute considerably to the existing knowledge on the operating performance of zakat funds in Algeria.

Productivity dispersion in the Italian knowledge-intensive business services (KIBS) industry: a multilevel analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Domenico Campisi ◽  
Paolo Mancuso ◽  
Stefano Luigi Mastrodonato ◽  
Donato Morea
Keyword(s):  
Multilevel Models ◽  
Geographic Location ◽  
Productivity Index ◽  
Data Envelopment ◽  
Business Services ◽  
Content Type ◽  
Knowledge Intensive Business Services ◽  
Multifactor Productivity ◽  
Knowledge Intensive ◽  
Business Sectors

PurposeThis paper aims to provide an analysis of the productivity evolution of a sample of 18,459 knowledge-intensive business services (KIBS) firms operating in Italy over the period 2012–2018. The interaction between productivity heterogeneity firm localization and firm sector of business are also analyzed.Design/methodology/approachThe empirical setting is based on data envelopment analysis (DEA) to measure the multifactor productivity index (MPI) and on the multilevel models to investigate if the source of productivity heterogeneity among the Italian KIBS are due to the geographic location and/or to the specific business sectors in which firms operate. Data have been gathered from the AIDA database, which contains financial data of all Italian firms.FindingsThe empirical results show that MPI heterogeneity in the Italian KIBS firms' is sensitive to the regional context in which firms operate to the specific KIBS sector and above all at the interactions arising between region and sector.Originality/valueThe paper contributes to identify the source of productivity dispersion in the Italian KIBS.

Efficiency evaluation of Indian oil and gas sector: data envelopment analysis

2019 ◽  
Vol 14 (2) ◽  
pp. 362-378 ◽  
Author(s):  
Vikas Vikas ◽  
Rohit Bansal
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Capital Investment ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Content Type ◽  
Indian Economy ◽  
Oil And Gas Sector

Purpose Data envelopment analysis (DEA), a non-parametric technique is used to assess the efficiency of decision-making units which are producing identical set of outputs using identical set of inputs. The purpose of this paper is to find the technical efficiency (TE), pure technical efficiency and scale efficiency (SE) levels of Indian oil and gas sector companies and to provide benchmark targets to the inefficient companies in order to achieve efficiency level. Design/methodology/approach In the present study, a group of 22 oil and gas companies which are listed on the National Stock Exchange for which the data were available for the period 2013–2017 has been considered. DEA has been performed to compare the efficiency levels of all companies. To measure efficiency, three input variables, namely, combined materials consumed and manufacturing expenses, employee benefit expenses and capital investment and two output variables – operating revenues and profit after tax (PAT) have been considered. On the basis of performance for the financial year ending 2017, benchmark targets based on DEA–CCR (Charnes, Cooper and Rhodes) model have been provided to the inefficient companies that should be focused upon by them to attain the efficiency level. The performance of the companies for the past five years has been examined to check the fluctuations in the various efficiency scores of the companies considered in the study over the years. Findings From the results obtained, it is observed that 59 percent, i.e. 13 out of 22 companies are technically efficient. By considering DEA BCC (Banker, Charnes and Cooper) model, 16 companies are observed to be pure technically efficient. In terms of SE, there are 14 such companies. The inefficient units need to improve in terms of input and output variables and for this motive, specified targets are assigned to them. Some of these companies need to upgrade significantly and the managers must take the concern earnestly. The study has also thrown light on the performance of the companies over last five years which shows Oil India Ltd, Gujarat State Petronet Ltd, Petronet LNG Ltd, IGL Ltd, Mahanagar Gas, Chennai Petroleum Corporation Ltd and BPCL Ltd as consistently efficient companies. Research limitations/implications The present study has made an attempt to evaluate the efficiency of Indian oil and gas sector. The results of the study have significant inferences for the policy makers and managers of the companies operating in the sector. The results of the study provide benchmark target level to the companies of Oil and Gas sector which can help the managers of the relatively less efficient companies to focus on the ways to improve efficiency. The improvement in efficiency of a company would not only benefit the shareholders, but also the investors and other stakeholders of the company. Originality/value In the context of Indian economy, very limited number of studies have focused to measure the efficiency of oil and gas sector in the context of Indian economy. The present study aims to provide the latest insight to the efficiency of the companies especially operating in the Indian oil and gas sector. Further, as per our knowledge, this study is distinctive in terms of analyzing the efficiency of Indian oil and gas sector for a period of five years. The longitudinal study of the sector efficiency provides a bird eye view of the average efficiency level and changes in the efficiency levels of the companies over the years.

scholarly journals Performance Assessment Based on the Relative Efficiency of Indian Opencast Coal Mines Using Data Envelopment Analysis and Malmquist Productivity Index

Energies ◽  
2020 ◽  
Vol 13 (18) ◽  
pp. 4902
Author(s):  
Biswaranjita Mahapatra ◽  
Chandan Bhar ◽  
Sandeep Mondal
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Primary Source ◽  
Efficiency Score ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Significant Difference ◽  
Using Data

Coal is the primary source of energy in India. Despite being the second-largest coal-producingcountry, there exists a significant difference in demand and production in India. In this study, the relativeefficiency of twenty-eight selected opencast mines from a large public sector undertaking coal companyin India for 2018–2019 was assessed and ranked by using data envelopment analysis (DEA). This studyused input-oriented DEA with efficiency decomposition to pure technical efficiency, technical efficiency,and scale efficiency. The result showed that 25% and 36% of mines were efficient in technical efficiencyand pure technical efficiency, respectively, whereas the eight mines scale efficiency was inefficient witha decreasing return to scale. Further, in this study, theMalmquist Productivity Index (MPI)was employedto measure the efficiency of the selected mines for three consecutive years (2016–2017 to 2018–2019).The result shows that in only three mines the efficiency is continuously improving from 2016–2017 to2018–2019, whereas in more than 20% of mines the efficiency score is decreasing. Comparing theMPIefficiency and productivity assessment throughout the years, changes in innovation and technology areincreasing from 2017–2018 to 2018–2019. Finally, the study concluded with a comprehensive evaluationof each variable with mines performance. The author formulated the strategies, which in turn help coalprofessionals to improve the efficiency of the mine.

Initial public offerings and air pollution: evidence from China

2015 ◽  
Vol 9 (1) ◽  
pp. 99-114 ◽  
Author(s):  
Yan Luo ◽  
Xiaolin Qian ◽  
Jinjuan Ren
Keyword(s):  
Air Pollution ◽  
Corporate Governance ◽  
Initial Public Offerings ◽  
Ambient Air ◽  
Environmental Conservation ◽  
Policy Implications ◽  
Chinese Government ◽  
Content Type ◽  
Public Offerings ◽  
The Impact

Purpose – The purpose of this study is to investigate the impact of firms’ financing activities on the environment. Faced with a deteriorating global environment, both corporations and regulatory bodies have become more responsive to environmental conservation problems. However, existing literature has not adequately addressed the question of whether and how firms’ business activities influence the environment. Design/methodology/approach – Using the daily air pollution indices of 120 Chinese cities from 2001 to 2012, this study found that air pollution is alleviated after firms’ initial public offerings (IPOs). This paper proposes that firms’ IPOs influence the ambient air pollution through three channels: production scale, technical reform and corporate governance effects. Findings – The authors of this study found that the proceeds acquired in IPOs result in enlarged production scales that increase pollution, while the investment of these proceeds in social responsibility-related technical reform and enhanced corporate governance reduce pollution. Moreover, the authors discover that firms with a higher state ownership emit fewer pollutants, thus supporting the positive monitoring role of the Chinese government. Originality/value – Although this study investigates the impact of IPOs on air quality in China, the proposed analytical framework also applies to studies of other financing activities in global markets. This study has important policy implications for government regulations in environmental controls.

Effects of cross-border acquisitions on efficiency and productivity of acquired companies: evidence from cement industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Slađana Savović ◽  
Predrag Mimović
Keyword(s):  
Data Envelopment Analysis ◽  
Transitional Economies ◽  
Cement Industry ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Content Type ◽  
Cross Border ◽  
Efficiency And Productivity ◽  
Practical Implications

PurposeThe purpose of this paper is to explore the effects of cross-border acquisitions on the efficiency and productivity of acquired companies in the cement industry in the context of a transitional economy.Design/methodology/approachThe Data Envelopment Analysis (DEA) and Malmquist Productivity Index were used to assess the efficiency and productivity of the acquired companies over the period 2000–2018. DEA and Malmquist index are combined with bootstrapping to perform succinct statistical inferences for determining the accuracy of results. The study assesses partial efficiency and productivity of three inputs: material, capital and labour, as well as the total factor efficiency and productivity of the acquired companies in the short and long term after the acquisitions.FindingsThe research results suggest that efficiency of material, efficiency of labour and the total factor efficiency of the acquired companies are higher after the acquisitions than before, while efficiency of capital is lower. In addition, the results show that the acquisitions had a positive impact on total factor productivity of the acquired companies.Practical implicationsThe results of this study have practical implications for managers, especially for policy-makers and industry analysts in deciding whether to encourage or discourage cross-border acquisitions in transitional economies.Originality/valueThe study contributes to a better understanding of the impact of cross-border acquisitions on efficiency and productivity of acquired companies in the manufacturing industry. Research in transitional economies related to subject matter is limited, and this study is the first empirical investigation of the effect of cross-border acquisitions on the efficiency and productivity in the cement industry in Serbia by applying the Data Envelopment Analysis.

Opportunity recognition efficiency of small Chinese firms: findings from data envelopment analysis

2019 ◽  
Vol 13 (4) ◽  
pp. 760-777
Author(s):  
Zisheng Guo ◽  
Jianqi Zhang ◽  
Heng Liu
Keyword(s):  
Data Envelopment Analysis ◽  
Small Firms ◽  
Opportunity Recognition ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Knowledge Stock ◽  
Chinese Firms ◽  
Content Type ◽  
Recognition Efficiency ◽  
Use Of Knowledge

Purpose Small firms in China anticipate entrepreneurial opportunities for continual growth. However, they may fail to recognize opportunities because of their inefficiency in managing their knowledge. Design/methodology/approach In this explorative paper, the authors assess the opportunity recognition efficiency of 168 small Chinese firms using data envelopment analysis (DEA). Supplementary Tobit regressions were conducted for further exploring the factors that influence the firms’ efficiency in opportunity recognition. Findings Results from the DEA suggest that most respondents recognize significantly fewer opportunities than those with equivalent knowledge stock. Moreover, many firms have low levels of pure technical efficiency but high levels of scale efficiency, indicating insufficient use of knowledge as a major reason for inefficiency in opportunity recognition. The Tobit regressions show that sales and research and development intensity are relevant to a firm’s opportunity recognition efficiency. Research limitations/implications This study calls for the investigation of efficiency issues in opportunity recognition and suggests that managers guard against unwarranted loss of opportunities owing to inefficient use of existing knowledge elements. Originality/value First, the authors introduce the concept of opportunity recognition efficiency within the entrepreneurial process. Second, they manifest the role of knowledge management in opportunity recognition. Third, they introduce DEA to investigate the relationship between knowledge stock and opportunity recognition. Fourth, this study reveals that inefficient use of knowledge is a disadvantage of small Chinese firms in terms of opportunity recognition.

Distributional effects of distinct aid types on local economic development in Malawi: new evidence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nixon Shingai Chekenya ◽  
Canicio Dzingirai
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Local Economic Development ◽  
Aid Effectiveness ◽  
Assessment Model ◽  
Policy Implications ◽  
Sufficient Evidence ◽  
Distributional Effects ◽  
Content Type ◽  
Geographical Locations

PurposeThe anecdote of this paper is to bring the aid effectiveness debate to the sub-national level using the change in night lights as an alternative measure of economic activity. We observe non-robustness of results regarding the effects of aid types on development in antecedent literature to arise due to the effects of aid being treated as a unitary component. provoked by such insightful observation and literature deficiency we employed geocoded data to examine Causal links between the varying types of aid and local economic development in Malawi.Design/methodology/approachThe main objective of the empirical examination is to examine the distributional effects of distinct aid types in local towns in Malawi. For that purpose, the authors thus have a panel dataset for each aid type indicator. Allowing for fixed time and town effects, the baseline light density growth regression model to estimate the effectiveness of disentangled aid on night light intensity was accomplished by employing a spatial dynamic panel data (SDPD) approach with instrumentation. Thus, panel regressions were performed to investigate both conceptual and policy implications.FindingsCross-city evidence shows that category aid type brings both negative and positive results depending on location within a country. There are cities and locations where certain aid type(s) does not matter whereas it matters most in some. This speaks to different levels of growth between different regions and cities in Malawi. As a result, we observe the size of the effect of distinct aid type(s) on economic activities to vary (increase/decrease) with the size of the location.Research limitations/implicationsIt may be interesting to generalize results from this study to a panel case over long periods of time using dynamic modelling with both threshold analysis and interaction effects Institutional factors need also to be includes in similar analyses. The authors leave this for a follow-up study. Second, the most immediate opportunity is application of the methodology to the other countries with geo-coded AidData. The authors expect to expand the analysis by taking into account other determinants of aid effectiveness at the local level, including the characteristics of donors and varieties of targeted development programmes.Practical implicationsResults in some geographical locations and towns indicate that the authors do not have sufficient evidence to reject the null hypothesis of the research study at 5% level. However, other geographical locations like Zomba indicate that aid category has a significant bearing on local economic growth. Therefore, as opposed to unitary aid approaches, we recommend distribution of relevant disentangled growth-enhancing aid type to specific administrative regions but with a bias toward smaller socially and economically deprived regions and towns.Social implicationsThe unique insight from this study is that foreign aid-growth benefits are symmetric and skewed toward large towns. If such unbalance aid-growth benefits anomalies are not addressed in a transparent manner it has the possibilities of promoting interregional migration which from Nielsen et al. (2011) and Findley et al (2011)'s evidence might trigger regional tensions and violent armed conflicts. Thus, there is need for equitable distribution of social and economic developmental aid free from political or ethnic inclination but based on transparent needs assessment model(s). Locations where social and developmental aid types seem to have negative or no effect serves as a salient indicator of aid leakages due to rent seeking tendencies of bureaucrats or weak institutions which ultimately pose welfare burden on citizens.Originality/valueApart from contributing to the extant literature on aid and economic growth, this paper relates to at least three other strands of research. First, the work partially answers a call by Minoiu and Reddy (2010), Schmid (2013) and Khomba and Trew (2019) for researchers to examine the growth effects of distinct aid types on local economic development. Second, the increase in aid volumes to Africa and the worsening of economic conditions has been the subject of considerable interest amongst development economists (e.g. Ravenhill, 1990; Lancaster, 1999; Easterly, 2003; Bräutigam and Knack, 2004 and Collier, 2006). This makes the use of a major aid recipient developing economy (Malawi) as a laboratory an anecdote. Third, use of disaggregated as opposed to unitary aid data with an African flavour.

Fiscal management performance and local economic development: evidence from a large emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helder Ferreira de Mendonça ◽  
Matheus Souza Peçanha
Keyword(s):  
Economic Development ◽  
Design Methodology ◽  
Local Economic Development ◽  
Panel Data Analysis ◽  
Emerging Economy ◽  
Data Envelopment ◽  
Management Performance ◽  
Content Type ◽  
Fiscal Management ◽  
The Difference

PurposeThis paper provides empirical evidence regarding the effect of fiscal management performance on local economic development in an emerging economy.Design/methodology/approachThe authors performed a panel data analysis based on data from the 5,568 Brazilian municipalities from 2006 to 2015. To consider if the difference in the characteristics of the municipalities can affect the results, the authors used different samples: a total of municipalities, metropolitan, nonmetropolitan, urban and rural municipalities. Furthermore, to check the difference of the effect on economic development associated with good and bad fiscal management in the municipalities, the authors considered a sample of the 500 best and the 500 worst fiscal management performances.FindingsThe findings indicate that an improvement in fiscal management is an important strategy to stimulate local economic development. In particular, the relevance of fiscal management performance to stimulate economic development is more significant in metropolitan and urban municipalities.Originality/valueThis analysis is the first to use data that take into account all the Brazilian municipalities covering information of the 21st century. Moreover, different from the previous literature, which considered efficiency from the data envelopment analysis (DEA), the authors used a fiscal management index that allowed one to consider a time-varying fiscal performance of the Brazilian municipalities.

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