scholarly journals JODRIVERS OF ECONOMIC PERFORMANCE: WHAT CAN WE OBSERVE IN THE CZECH FOOD INDUSTRY?

2021 ◽  
Vol 24 (3) ◽  
pp. 110-127
Author(s):  
Gabriela Trnková ◽  
Zdeňka Žáková Kroupová
Keyword(s):  
Technological Change ◽  
Technical Efficiency ◽  
Food Processing ◽  
Cost Reduction ◽  
Cost Minimization ◽  
Generalized Method Of Moments ◽  
Error Component ◽  
Scale Efficiency ◽  
Sample Mean ◽  
Productivity And Competitiveness

This paper is focused on the investigation of the competitiveness drivers, namely technical and scale efficiency and technological change, and their relation to the profitability of the Czech food processing companies in the period 2016–2019. This investigation is based on the stochastic frontier modelling of an input distance function in the specification of the four-error-component model. The model is estimated with a multi-step procedure employing the generalized method of moments estimator addressing the potential endogeneity of netputs, and panel data gained from the Bisnode Albertina database. The results revealed (evaluated on the sample mean) that investigated food processing sectors were scale efficient in the analysed period, however, their production technologies exhibited prevailing technological regress. Moreover, the room for almost 17% cost reduction by the technical efficiency improvements was found out in all investigated sectors. Although inter-sectoral differences exist in the scale efficiency, technological change and technical efficiency dynamics, to increase the productivity and competitiveness of food processing companies, it is generally appropriate to focus on technical efficiency and technological change improvements. Both these competitiveness drivers connected with the cost reduction and minimizing of wastage of inputs are achievable through innovations. In general, the basic source of their financing is profit, the achievement of which is supported by cost minimization. However, it was found that sub-sectors, which are linked to sensitive sectors of agricultural production – that means sectors with the lowest national self-sufficiency, the highest level of imports and thus strong cost reduction pressure – have problem to translate the ability to produce efficiently into profitability. Although these food sectors, which have been also facing strong competition for a long time, which leads to significant pressure to reduce costs, achieved the highest technical efficiency, their profitability was lowest from the investigated sectors.

scholarly journals BANK TECHNICAL EFFICIENCY, PURE TECHNICAL EFFICIENCY AND SCALE EFFICIENCY, DOES ECONOMIC FREEDOM MATTER? EVIDENCE FROM CENTRAL EUROPE

2021 ◽  
Vol 3 (8) ◽  
pp. 76-103
Author(s):  
Ahmad Shakhashiro ◽  
Fakarudin Kamarudin ◽  
Ida Md. Yasin
Keyword(s):  
Technical Efficiency ◽  
Central Europe ◽  
Economic Freedom ◽  
Random Effect ◽  
Generalized Method Of Moments ◽  
Random Effect Model ◽  
Scale Efficiency ◽  
Parametric Data ◽  
Effect Model ◽  
The Impact

The current study attempts to investigate the impact of the limitation of economic freedom on conventional bank technical efficiency and its components (pure technical efficiency and scale efficiency) by using data from the region of central Europe. Non-parametric Data Envelopment Analysis (DEA) is employed to measure the bank's technical efficiency and its components levels. The applied method of estimation consists of “pooled Ordinary Least Square (OLS), Fixed Effect Model (FEM), Random Effect Model (REM), and the Generalized Method of Moments (GMM)” to investigate the influence of economic freedom and other potential determinants on bank efficiency. This study has found that the indicators of Government Spending, Fiscal Health, Business Freedom, Labor Freedom, and Financial Freedom have positive relationships with bank’s technical efficiency, pure technical efficiency, and scale efficiency. Contrariwise, Overall Economic Freedom, Monetary Freedom, and Investment Freedom exhibit a negative impact on a bank’s technical efficiency and its components. Implications from the study permit the related parties to identify the significant dimensions of economic freedom to the efficiency of the banks to ensure better bank performance.

scholarly journals Factors influencing efficiency of Islamic banks in GCC region: Evidence from Arab Spring period

2017 ◽  
Vol 14 (3) ◽  
pp. 345-353 ◽  
Author(s):  
Majed Alharthi
Keyword(s):  
Technical Efficiency ◽  
Arab Spring ◽  
Economies Of Scale ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Generalized Method Of Moments ◽  
Generalized Least Squares ◽  
Scale Efficiency ◽  
Islamic Banks ◽  
Gcc Countries

The main purpose of this research is to estimate efficiency and its factors of Islamic banks in GCC countries during the period 2005-2014. In this study, efficiency is measured using data envelopment analysis (DEA), which is divided into technical efficiency (TE), pure technical efficiency (PTE), and scale efficiency (SE). The statistical methods to find the determinants are generalized least squares (GLS), generalized method of moments (GMM) and Tobit regressions. The DEA measures show that the highest efficiency found to be in Islamic banks in Kuwait. The statistical results demonstrate that size of banks is highly important to efficiency as larger Islamic banks could reduce their costs (based on economies of scale approach) and they could provide more services (more outputs) than smaller banks. Focusing on capitalisation, the results suggest that better capitalised banks have better efficiency. The lending services increase the efficiency significantly, which encourage Islamic banks in GCC region to focus more in providing loans. Furthermore, achieving profits is significantly and positively support the efficiency of Islamic banks. In contrast, foreign and local ownerships decreased efficiencies significantly. Additionally, banks in lower rates of economic growth operated more efficiently. Finally, the global financial crisis and Arab spring impacted the efficiency of Islamic banks in GCC countries dangerously. The strength point is that the efficiency of Islamic banks in GCC countries has not been affected by inflation (based on insignificant correlation between efficiency scores and inflation). These results actually help bankers and policy maker to evaluate the financial performance in banking sector. Moreover, identifying the positive and negative determinants allow banks to apply strategies to enhance efficiency.

scholarly journals Investigation on firm efficiency: evidence from selected Asia-Pacific countries

2018 ◽  
Vol 25 (8) ◽  
pp. 3062-3080 ◽  
Author(s):  
Khar Mang Tan ◽  
Fakarudin Kamarudin ◽  
Amin Noordin Bany-Ariffin ◽  
Norhuda Abdul Rahim
Keyword(s):  
Technical Efficiency ◽  
Small Firms ◽  
Banking Sector ◽  
Profit Maximization ◽  
Asia Pacific ◽  
Scale Efficiency ◽  
Scale Level ◽  
Firm Efficiency ◽  
Content Type ◽  
Parametric Data

Purpose The purpose of this paper is to examine the firm efficiency or technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) in the selected developed and developing Asia-Pacific countries. Design/methodology/approach The sample consists of a sum of 700 firms in selected developed and developing Asia-Pacific countries over the period from 2009 to 2015. The non-parametric data envelopment analysis under the production approach is used to investigate firm efficiency. Findings On average, this paper discovers that the firms in selected Asia-Pacific countries are moderately efficient. Scale inefficiency (SIE) is found to be the dominant source of firms’ technical inefficiency. The analysis of return to scale shows that the large firms tend to operate at decreasing return to scale level, while the small firms tend to operate at increasing return to scale level. Practical implications The findings from this paper provide significant insights to the policy makers and firm managers in promoting the efficient firms of Asia-Pacific countries. Originality/value The present paper conducts a critical analysis on return to scale in the firms sector of Asia-Pacific context, which is ignored by the past studies on firm efficiency since the analysis of return to scale is mostly emphasized on banking sector. The precise nature of SIE is important for a firm to be efficient in achieving the firm’s primary goals of profit maximization and sustaining market competitiveness.

scholarly journals The Measurement of Innovation Efficiency of Chinese High-tech Industry Using Data Envelopment Analysis

2015 ◽  
Vol 65 (s2) ◽  
pp. 101-113 ◽  
Author(s):  
Ling Jiang ◽  
Yunyu Jiang ◽  
Zhijun Wu ◽  
Dongsheng Liao ◽  
Runfa Xu
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Environmental Variables ◽  
Scale Efficiency ◽  
High Tech ◽  
Data Envelopment ◽  
High Tech Industry ◽  
Economic Competitiveness ◽  
Development Level ◽  
Using Data

In the era of knowledge economy, a country’s economic competitiveness depends largely on the development level of high-tech industry. This paper evaluates the efficiency of China’s high-tech industry in 31 provinces in 2012 with data envelopment analysis. The empirical results are summarized as following. Firstly, when the effects of exogenous environmental variables are not controlled, the comprehensive technical efficiency of 31 provinces will be overestimated, the pure technical efficiency will be underestimated, and the scale efficiency value will be overestimated. Secondly, after eliminating the environmental impact, the comprehensive technical efficiency of 31 provinces with the average of 0.395 is rather low, due to the low scale efficiency.

Eco-Efficiency Evaluation of Poyang Lake Region Based on DEA Method

2011 ◽  
Vol 181-182 ◽  
pp. 118-123
Author(s):  
Hai Tao Su ◽  
Hai Qing Guo ◽  
Jin Feng Hu ◽  
Hui Zeng
Keyword(s):  
Technical Efficiency ◽  
Poyang Lake ◽  
Scale Efficiency ◽  
Maximum Output ◽  
Efficiency Evaluation ◽  
Economic Region ◽  
Poyang Lake Region ◽  
Lake Region ◽  
Decision Making Unit ◽  
Dea Method

The eco-efficiency and sustainable development have become the focus of world and the issues to be resolved urgently. In this paper, the recent research status of eco-economic region of Poyang Lake in China is analyzed, and the multi-level evaluation index system of eco-efficiency of Poyang Lake is constructed. The minimum input and maximum output method based on DEA(Data Envelopment Analysis) is proposed, the mathematical model of validity evaluation of eco-economic region of Poyang Lake is set up and programmed by MATLAB. Efficiency evaluation of a complex system with the cases from nine districts of Poyang Lake region in China is realized, which is more than one homogeneous decision-making unit of multi-input and multi-output. The MDEA (Modified DEA) method resolves the problems of ranking DEA efficient units of Poyang Lake, The DEAP2.1 software differentiates the technical efficiency and scale efficiency of eco-economic region of Poyang Lake, and adjusts the DEA inefficient units to become technical efficiency. The model can be used to analyze efficiency and diagnose different units at the same time or same unit at different time. It can be more accurate and convenient for the management process of eco-economic region of Poyang Lake and the similar eco-economic region.

scholarly journals Does Farm Size and Specialization Matter for Productive Efficiency? Results from Kansas

2011 ◽  
Vol 43 (4) ◽  
pp. 515-528 ◽  
Author(s):  
Amin W. Mugera ◽  
Michael R. Langemeier
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Production Technology ◽  
Returns To Scale ◽  
Productive Efficiency ◽  
Farm Size ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Sample Period ◽  
Analysis Techniques

In this article, we used bootstrap data envelopment analysis techniques to examine technical and scale efficiency scores for a balanced panel of 564 farms in Kansas for the period 1993–2007. The production technology is estimated under three different assumptions of returns to scale and the results are compared. Technical and scale efficiency is disaggregated by farm size and specialization. Our results suggest that farms are both scale and technically inefficient. On average, technical efficiency has deteriorated over the sample period. Technical efficiency varies directly by farm size and the differences are significant. Differences across farm specializations are not significant.

Productivity, technical efficiency, and technological change in Vietnamese oceanic tuna fisheries

2022 ◽  
Vol 248 ◽  
pp. 106202
Author(s):  
Thanh Viet Nguyen ◽  
Michel Simioni ◽  
Cao Le Quyen ◽  
Hreiðar Pór Valtýsson
Keyword(s):  
Technological Change ◽  
Technical Efficiency ◽  
Tuna Fisheries

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.

Productivity growth of Indonesian rice production: sources and efforts to improve performance

2018 ◽  
Vol 67 (9) ◽  
pp. 1792-1815 ◽  
Author(s):  
Joko Mariyono
Keyword(s):  
Technological Change ◽  
Technical Efficiency ◽  
Production Technology ◽  
Productivity Growth ◽  
Scale Effects ◽  
Allocative Efficiency ◽  
Rice Production ◽  
Content Type ◽  
Tfp Growth ◽  
Efficiency Effects

PurposeThe purpose of this paper is to investigate the productivity of rice production by decomposing the growth of total factor productivity (TFP) into four components: technological change, scale effects, technical and allocative efficiencies.Design/methodology/approachThis study employed an econometric approach to decompose TFP growth into four components: technological change, technical efficiency, allocative efficiency and scale effect. Unbalanced panel data used in this study were surveyed in 1994, 2004 and 2014 from 360 rice farming operations. The model used the stochastic frontier transcendental logarithm production technology to estimate the technology parameters.FindingsThe results indicate that the primary sources of TFP growth were technological change and allocative efficiency effects. The contribution of technical efficiency was low because it grew sluggishly.Research limitations/implicationsThis study has several shortcomings, such as very lowR2and the insignificant elasticity of labour presented in the findings. Another limitation is the limited time period panel covering long interval, which resulted in unbalanced data.Practical implicationsThe government should improve productivity growth by allocating more areas for rice production, which enhances the scale and efficiency effects and adjusting the use of capital and material inputs. Extension services should be strengthened to provide farmers with training on improved agronomic technologies. This action will enhance technical efficiency performance and lead to technological progress.Social implicationsAs Indonesian population is still growing at a significant rate and the fact that rice is the primary staple food for Indonesian people, the productivity of rice production should increase continually to ensure social security at a national level.Originality/valueThe productivity growth is decomposed into four components using the transcendental logarithm production technology based on farm-level data. The measure has not been conducted previously in Indonesia, even in rice-producing countries.

scholarly journals Performance of Village Unit Co-Operatives in Yogyakarta Special Region: A Data Envelopment Analysis Approach

2017 ◽  
Vol 1 (2) ◽  
pp. 067
Author(s):  
Abi Pratiwa Siregar ◽  
Jamhari Jamhari ◽  
Lestari Rahayu Waluyati
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Best Practice ◽  
Negative Impact ◽  
Positive Impact ◽  
Three Dimensions ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Rice Milling ◽  
Special Region

This study assessed the performance of 32 village unit co-operatives (KUD) in Yogyakarta Special Region during 2011 to 2012. The efficiency level of the KUD were evaluated by employing the data envelopment analysis and multiple regression analysis using panel data to determine the factors affecting efficiency level. Efficiency analysis was decomposed into three dimensions to explore possible sources of inefficiency. According to Marwa and Aziakpono (2016), the first dimension was technical efficiency, which explored the overall effectiveness of transforming the productive inputs into desired outputs compared to the data-driven frontier of best practice. The second dimension was pure technical efficiency, which captured managerial efficiency in the intermediation process. The third dimension was scale efficiency, which explored whether KUD were operating in an optimal scale of operation or not. The results found that the average scores are 64%, 92%, and 68% for technical, pure technical, and scale efficiency respectively in 2011, while in 2012 the average scores are 57%, 94%, and 60% for technical, pure technical, and scale efficiency. Factors having significantly positive impact on several measures of efficiency are incentive and dummy variables (agriculture inputs and hand tractor). Accounts receivable only has positive relationship to pure technical efficiency. On the other hand, rice milling unit and electricity services have negative impact with several measures of efficiency.

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