scholarly journals Technical Efficiency of Pakistan’s Manufacturing Sector: A Stochastic Frontier and Data Envelopment Analysis

2007 ◽  
Vol 46 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Musleh-Ud Din ◽  
Ejaz Ghani ◽  
Tariq Mahmood
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Large Scale ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Data Envelopment ◽  
Industrial Groups ◽  
Production Frontiers ◽  
Non Parametric

This paper examines the efficiency of the large-scale manufacturing sector of Pakistan using parametric as well as non-parametric frontier techniques. Production frontiers are estimated for two periods─1995-96 and 2000-01─for 101 industries at the 5-digit PSIC. The results show that there has been some improvement in the efficiency of the large-scale manufacturing sector, though the magnitude of improvement remains small. The results are mixed at the disaggregated level: whereas a majority of industrial groups have gained in terms of technical efficiency, some industries have shown deterioration in their efficiency levels. The results from both the approaches are consistent, and in line with similar studies.

scholarly journals Evaluation of the technical efficiency in the production of National Cocoa in the main cantons of the province of Guayas

2021 ◽  
Vol 25 (110) ◽  
pp. 14-22
Author(s):  
Martha Bucaram Levarone ◽  
Francisco Quinde Rosales ◽  
Joy Mayorga Ramos ◽  
Martha Bueno Quinonez
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Productive Efficiency ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Simon Bolivar ◽  
Non Parametric

A comparative analysis of the technical efficiency in the production of national cocoa among the main producing cantons of the province of Guayas was carried out. For this, the study was based on an analysis with inductive reasoning and empirical-analytical paradigm, through the elaboration of surveys to 361 UPA's in the cantons of: Milagro, San Jacinto de Yaguachi, El Empalme, Alfredo Baquerizo Moreno, Naranjal and Simón Bolívar; these data served as the basis for the elaboration of the Data Envelopment Analysis (DEA) model. The results show that on average, the Simón Bolívar canton is the canton with the highest technical efficiency, with 50% of the total UPAs surveyed in the range of 70% and 99% effectiveness. Finally, regarding the observed averages of allocative efficiency, it can be concluded that Jujan has the highest average with 75%. Keywords: Technical and Allocative Efficiency, National Cocoa, Enveloped Data Analysis, Non Parametric Method. References [1]M. Naranjo., «Un Puerto en busca de una Nación, Guayaquil y la idea fundacional del Ecuador como país,» de Seminario Internacional Poder, Política y Repertorios de la Movilización Social en el Ecuador Bicentenario, Quito, 2009. [2]S. C. Mogro, V. Andrade-Díaz y D. P.-. Villacís, «Posicionamiento y eficiencia del banano, cacao y flores del Ecuador en el mercado mundial,» Revista Ciencia UNEMI, vol. 9, nº 19, pp. 48-53, 2016. [3]M. Vassallo, Diferenciación y agregado de valor en la cadena ecuatoriana del cacao, Quito: Editorial IAEN, 2015. [4]M. Pigache y S. Bainville, Cacao tipo ‘Nacional’ vs. Cacao CCN51: ¿Quién ganará el partido?, Quito: Ird Editions, 2007. [5]M. Chiriboga, Jornaleros, grandes propietarios y exportación cacaotera, Quito: Universidad Andina Simón Bolívar, 2013. [6]A. Acosta., Breve Historia Económica del Ecuador, Quito: Editora Nacional, 2006. [7]M. Espinoza y Y. Arteaga., «Diagnóstico de los Procesos de Asociatividad y la Producción de Cacao en Milagro y sus sectores aledaños,» Revista Ciencia UNEMI, vol. 8, nº 14, pp. 105-112, 2015. [8]E. Romero, M. Fernández, J. Macías y K. Zúñiga, «Producción y comercialización del cacao y su incidencia en el desarrollo socioeconómico del cantón Milagro,» Revista Ciencia UNEMI, vol. 9, nº 17, pp. 56-64, 2016. [9]e. I. I. d. C. A. Ministerio de Agricultura y Ganadería, La Agroindustria en el Ecuador. Un diagnóstico integral, Quito: IICA, 2006. [10]R. Rodríguez, M. Brugiafreddo y E. Raña., «Eficiencia técnica en la agricultura familiar: Análisis envolvente de datos (DEA) versus aproximación de fronteras estocásticas (SFA),» Nova Scientia, vol. 9, nº 18, pp. 342-370, 2017. [11]A. Resti., «Evaluating the cost-efficiency of the Italian banking system: what can be learned from the joint application of parametric and non-parametric techniques,» Journal of Banking & Finance, vol. 21, nº 2, pp. 221-250, 1997. [12]T. Coelli y S. Perelman, «A Comparison Of Parametric And Non-Parametric Distance Functions: With Application To European Railways,» European Journal Of Operational Research, vol. 117, nº 2, pp. 326-339, 1999. [13]B. Iráizoz, M. Rapún y I. Zabaleta., «Assessing the technicalb efficiency of horticultural production in Navarra, Spain,» Agricultural Systems, vol. 78, nº 3, pp. 387-403, 2003. [14]K. Sharma, S. Ping y H. Zaleski., «Productive efficiency of the swine industry in Hawaii,» Research Series, vol. 77, pp. 1-24, 1996. [15]D. Tingley, S. Pascoe y L. Coglan, «Factors affecting technical efficiency in fisheries: Stochastic Production Frontier versus Data Envelopment Analysis approaches,» Fisheries Research, vol. 73, nº 3, pp. 363-376, 2005. [16]H. Johansson, «Technical, allocative and economic efficiency in Swedish dairy farms: the Data Envelopment Analysis versus the Stochastic Frontier Approach,» de Poster background paper prepared for presentation at the XIth International Congress of the European Association of Agricultural Economists (EAAE), Copenhagen, 2005. [17]F. Madau, «Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) Models,» Munich Personal RePEc Archive (MPRA), vol. 41403, nº 18, pp. 1-25, 2012. [18]E. A. S. d. Pedro, Nivel de competitividad y eficiencia de la producción ganadera, Córdoba: Tesis doctoral. Departamento de Producción Animal, 2013. [19]F. Bacon, Novum Organum, Londres, 1620. [20]Seminario Metodología de la Investigación, Bogota: Facultad de Ciencias Económicas, Universidad Nacional de Colombia, 2015.  

scholarly journals Labour efficiency in construction industry in Europe based on frontier methods: data envelopment analysis and stochastic frontier analysis

2017 ◽  
Vol 23 (6) ◽  
pp. 787-795 ◽  
Author(s):  
Joanicjusz NAZARKO ◽  
Ewa CHODAKOWSKA
Keyword(s):  
Data Envelopment Analysis ◽  
Construction Industry ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Analysis ◽  
European Countries ◽  
Personnel Cost ◽  
Data Envelopment ◽  
Frontier Analysis

The primary problems pertaining to productivity or – more precisely – efficiency are: how to define it and how to measure it. This article studies technical efficiency in Stochastic Frontier Analysis (SFA) – the input-oriented frontier model – in the construction industry and compares it with Data Envelopment Analysis (DEA) results. The models ex­plored in this paper were constructed on the basis of two outputs and personnel cost as an input. The research sample consisted of European countries. The aim was to determine whether there are substantial differences in estimation of ef­ficiency derived from those two alternative frontier approaches. The comparison of results according to the models may translate into higher reliability of the undertaken labour efficiency analysis in construction and its conclusions. Although the results are not characterized by high compatibility, the conducted analysis indicated the most attractive countries taking into account labour cost to profit and turnover ratios of enterprises. One of the determinants which should not be ignored when analysing the labour efficiency is the level of development of a country; however, it is not the sole factor affecting the efficiency of the sector.

scholarly journals Pengukuran Efisiensi Perbankan: Studi Kasus Kelompok Bank Buku I Dan Buku II

2018 ◽  
Vol 11 (2) ◽  
pp. 188-201
Author(s):  
Teguh Santoso
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Parametric Method ◽  
Data Envelopment ◽  
Operational Approach ◽  
Efficiency Calculation ◽  
Non Parametric

This study aims to measure the technical efficiency of banks (BUKU I and BUKU II categories). The efficiency calculation in this study uses Non-Parametric method, Data Envelopment Analysis (DEA). This research uses an operational approach in performing input and ouput specifications. The inputs are interest expenses, labor expenses, and other expenses. The result of technical efficiency calculation shows that both banks in BUKU I and BUKU II have less efficient in technical efficiency value, either with the assumption of CRS or VRS. However, the value of technical efficiency indicates that BUKU II banks have greater technical efficiency value than the banks in BUKU I category.

Technical Efficiency Through Innovative Methods and Estimations in Financial Markets

2021 ◽  
pp. 55-70
Author(s):  
Aikaterini Kokkinou
Keyword(s):  
Financial Markets ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Productive Efficiency ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Parametric Data ◽  
Efficiency Estimation ◽  
Non Parametric

This paper investigates technical efficiency estimation in financial markets, using both parametric and non-parametric techniques: parametric Stochastic Frontier Analysis (SFA) approach or non-parametric Data Envelopment Analysis (DEA). This chapter focuses on reviewing the stochastic frontier analysis literature regarding estimating inefficiency in financial markets level, as well as explaining producer heterogeneity along with the relationships with productive efficiency level. This chapter investigates technical efficiency estimation in financial markets, using both parametric and non-parametric techniques: parametric Stochastic Frontier Analysis (SFA) approach or non-parametric Data Envelopment Analysis (DEA). More specifically, this chapter focuses on reviewing the stochastic frontier analysis literature regarding estimating inefficiency, its industrial level, as well as explaining producer heterogeneity along with the relationships with productive efficiency level.

Efficiency of glass firms in India: an application of data envelopment analysis

2016 ◽  
Vol 13 (1) ◽  
Author(s):  
Mini Kundi ◽  
Seema Sharma
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Design Methodology ◽  
Large Scale ◽  
Returns To Scale ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Efficiency Measures ◽  
Target Values ◽  
Practical Implications

Purpose The purpose of the present study is to evaluate the efficiency of glass firms in India. Design/methodology/approach Data envelopment analysis (DEA) has been employed to study the technical, scale and super efficiency measures of glass firms in India. Findings Major findings of DEA analysis show that 65 percent firms are found to be technically efficient. Returns to scale analysis indicate that five firms are operating at decreasing returns to scale and two firms are exhibiting increasing returns to scale. Further, results show that small– and medium–scale firms are more efficient than large–scale firms. Old firms are more efficient compared to the young firms and foreign-owned firms are technically more efficient compared to the domestic firms. Practical implications The results of this study would help the managers to assess their relative efficiency and take corrective measures to efficiently use their resources. Originality/value This seems to be the first study to apply DEA to analyze the efficiency of glass firms in India. No previous study on glass industry seems to have decomposed the measure of overall technical efficiency into its components, namely pure technical efficiency and scale efficiency and no study seems to have examined whether ownership, age and size of a firm are significant for its efficiency. In addition, no earlier study seems to have ranked the glass firms based on their efficiency values. Further, target values of inputs and outputs are demonstrated in this study. Stability of efficiency scores is also checked.

scholarly journals ANALISIS EFISIENSI DAN FAKTOR-FAKTOR PRODUKSI KOMODITAS SEKTOR BASIS KABUPATEN PATI (Studi Kasus Budidaya Ikan Bandeng Kabupaten Pati, Jawa Tengah)

2019 ◽  
Vol 14 (1) ◽  
pp. 59
Author(s):  
Triana Dwi Wahyuni ◽  
Sasongko Sasongko ◽  
Sri Muljaningsih
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Large Scale ◽  
Ordinary Least Squares ◽  
Data Envelopment ◽  
Central Java ◽  
Factors Analysis ◽  
Production Factors ◽  
Factors Influencing

Penelitian ini bertujuan untuk mengukur tingkat efisiensi teknik pada pembudidaya ikan bandeng dan faktor-faktor yang mempengaruhi produksi ikan bandeng sebagai komoditas sektor basis di Kabupaten Pati. Metode penelitian yang digunakan adalah dengan analisis DEA (Data Envelopment Analysis) dengan asumsi output oriented dan pendekatan Variable Return to Scale (VRS) untuk mengukur tingkat efisiensi teknik pembudidaya bandeng. Selanjutnya dengan analisis regresi linear berganda, untuk mengetahui faktor-faktor yang mempengaruhi produksi bandeng di Kabupaten Pati. Hasil penelitian menunjukkan bahwa tingkat efisiensi teknis pembudidaya bandeng di Kabupaten Pati masih sangat rendah, rata-rata efisiensi teknis adalah 7,41. Adapun sebanyak 55% atau sebanyak 44 pembudidaya dari 80 sampel pembudidaya masih berada di bawah rata-rata. Hasil analisis regresi diperoleh bahwa penggunaan benih, luas lahan, dan jarak lokasi tambak dengan laut mempunyai pengaruh yang sangat signifikan; Sedangkan penggunaan tenaga kerja tidak berpengaruh secara signifikan terhadap produksi bandeng.Efficiency and Production Factors Analysis of Base Sector  Commodity in the Pati Regency (Case Study: Milkfish Farming  in Pati Regency, Central Java)This study aims to measure the level of technical efficiency in milkfish farmers and factors influencing milkfish production as a base sector commodity in Pati Regency. The research applied DEA (Data Envelopment Analysis) with output oriented assumption and Variable Return to Scale (VRS) approaches to measure the efficiency level of milkfish farmers. It is then analysed by Ordinary Least Squares (OLS) to determine factors influencing milkfish production in Pati Regency. Results showed that the level of technical efficiency of milkfish farmers in Pati Regency was in low level with average number of 7.41. There are 55% of 80 farmers are below average. Furthermore, this research described the efficiency level of milkfish farmers in low, medium and large scale. OLS analysis found that the use of seeds, land area, and distance between ponds and sea have significant effect on milkfish production instead of the use of labour. 

scholarly journals THE EFFICIENCY OF LARGE AND MEDIUM SCALE OF THE FOOD AND BEVERAGE INDUSTRIAL PRODUCTION IN EAST JAVA: DATA ENVELOPMENT ANALYSIS (DEA) AND STOCHASTIC FRONTIER ANALYSIS (SFA) APPROACHES

2021 ◽  
Vol 2 (2) ◽  
pp. 139-157
Author(s):  
Shochrul Rohmatul Ajija ◽  
Mohammad Zeqi Yasin ◽  
Jarita Duasa
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Beverage Industry ◽  
Food And Beverage Industry ◽  
Food And Beverage ◽  
Dea Method

This study aims to estimate the technical efficiency of food and beverage industry in East Java in 2011 to 2013 using micro data at the company level. Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) are used to estimate technical efficiency. The output variable was the value of production, while input variables were capital, labor, raw material, and energy. The Likelihood Ratio test dictates that the Translog production function is more appropriate for use in this study. The estimation results show that the efficiency of food and beverage companies in East Java by using SFA has decreased significantly by 3.02%, whereas with the DEA method, the average technical efficiency has increased by 0.583% compared to the beginning of the year in 2011. In addition, there is difference in the efficiency value between SFA and DEA. The technical efficiency value of SFA calculation is greater than that of DEA. The dissimilarity is caused by the difference of specification in both methods related to the interaction between uncaptured variables in the DEA method. The results of this policy have implications on the government's obligation to pay attention to the food and beverage industry in order to suppress the company’ various operating costs, such as maintenance for old machines, which has an impact on on technical efficiency or improve the ability of labor in terms of machinery utilization. Therefore, in the following year, the performance of the food and beverage industry as the largest sub-sector in manufacturing is able to show the progress.

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