scholarly journals Total Factor Productivity Growth of Ghanaian Electricity Distribution Utilities Using Data Envelopment Analysis and Malmquist Index (2000–2020)

2021 ◽  
Vol 3 (2) ◽  
pp. 223-248
Author(s):  
Smart Edward Amanfo

The increasing need for electricity access to drive economic growth, social development, poverty alleviation and environmental sustainability requires that efficient allocation of scarce and competing resources in the generation, transmission and distribution subsectors of the electricity sector is indispensable. This paper analyses total factor productivity growth in a single input multiple-output framework in Ghana. The technique applied is data-orientated nonparametric Data Envelopment Analysis using Win4Deap 2 software. Total Factor Productivity Change is evaluated through Malmquist Productivity Index (MPI), as well as technological change (TECHC) and efficiency change (EFFCH) using firm-level panel data. Sources of productivity growth comparison are made between Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO) for the periods 2000 to 2020. The results show TECHCH marginally declined at an average annual rate of 0.3% and drives the electric power distribution productivity regress in ECG and NEDCO from 2000 to 2020. Further, the results indicate stagnation in scale efficiency, pure efficiency and efficiency change when estimated over 20 years. At firm levels comparison, the study shows that the Northern Electricity Distribution Company recorded a productivity growth rate of 4.9%, mainly due to technical progress. However, the Electricity Company of Ghana experienced a slight deterioration of productivity performance due to a 5.3% decline in technical efficiency. The study offers several policy recommendations on how the underperforming firm can learn to improve efficiency and technical to reduce electricity transmission losses.

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Yennie Glorya Panjaitan ◽  
Edy Yusuf Agung Gunanto

Sektor pariwisata sebagai salah satu sektor yang diandalkan bagi penerimaan daerah maka pemerintah Provinsi Jawa Tengah dituntut untuk dapat menggali dan mengelola potensi wisata yang dimiliki. Penelitian ini bertujuan untuk menganilisis tingkat efisiensi dan produktivitas pada sektor pariwisata di Jawa Tengah antara tahun 2017 dan 2019 dengan sampel 35 Kabupaten/Kota. Analisis dilakukan dengan menggunakan konsep efisiensi yang didasarkan pada teori produksi, pengukuran nilai efisiensi dan produktivitas diperoleh menggunakan metode analisis Data Envelopment Analysis (DEA) dan Malmquist Productivity Index (MPI). Asumsi yang digunakan adalah variable return to scale (VRTS) dan model orientasi output (output oriented). Dengan variable input objek wisata, restoran dan rumah makan, biro perjalanan wisata dan jumlah hotel bintang serta melati. Variabel output dalam penelitian ini adalah wisatawan dan pendapatan sektor pariwisata. Hasil akhir penelitian menunjukkan bahwa terdapat 16 Kabupaten/Kota (45,8%) di tahun 2017, 18 Kabupaten/Kota (51,4%) di tahun 2019 yang mencapai efisiensi teknis penuh. Total Factor productivity change mengindikasikan bahwa 22 Kabupaten/Kota (62,8%) mendekati frontier baik pada frontier produksi maupun frontier efisiensi dan dari scale efficiency change mengindikasikan bahwa terdapat 17 Kabupaten/Kota (48,57%) mengalami perbaikan efisiensi teknis selama periode 2017 ke 2019.


2014 ◽  
Vol 16 (3) ◽  
pp. 277-308
Author(s):  
Ndari Surjaningsih ◽  
Bayu Panji Permono

This paper calculates and decomposes the Total Factor Productivity (TFP) for large and medium scale industry in Indonesia covering the period of 2000-2009. By using Data Envelopment Analysis (DEA)  method, the result shows there is a shift of the supporting factors on the growth of TFP on manufacturing sector within the 2 (two) sample period. In the period of 2000-2004, efficiency change becomes the main contributor on the growth of TFP. Whereas in the period of 2005-2009, technical change becomes the main supporting factor of TFP,however it goes along with the growth of negative efficiency change or the decline of the company’s catching-up effect ability to adapt with the more advance technology. The grouping of the sample across subsectors, technical change and also efficiency change shows the declining amount of manufacture industry with superior productivity. Furthermore, the number of low and weakening catching-up industry is increasing.  Keywords: Indonesian manufacturing, total factor productivity, technical change, efficiency change, economic scale change, Data Envelopment Analysis JEL Classification: L6, M11


2011 ◽  
Vol 3 (5) ◽  
pp. 296-310
Author(s):  
Indrajit Bairagya

Since its very onset, the concept and definition of the informal sector has been a subject of debate both at the national and international levels. Existing literature uses the terms ‘informal sector’ and ‘unorganized sector’ interchangeably. However, in India, the characteristics of enterprises in the informal and non-informal unorganized manufacturing sectors are different and, thus, it is not justifiable to consider the informal and unorganized sector interchangeably for the manufacturing sector. Thus, the objective of this paper is to test the hypothesis on whether or not the total factor productivity growth (TFPG) of the informal manufacturing sector is different from the non-informal unorganized manufacturing sector. TFPG is decomposed into technical efficiency change and technological change. Later, technical efficiency change is further decomposed by pure efficiency change and scale efficiency change. Results show that the average TFPG of the non-informal sector is higher than the informal sector. The informal sector heavily concentrates in own account small enterprises, whereas the non-informal unorganized sector concentrates only in directory manufacturing enterprises (DME). Due to large in size, DME avails the advantages of economies of scale, which, in turn, helps the units for more growth in terms of total factor productivity growth. The main reason for productivity decrease of the enterprises, besides technology regress and the lack of adequate investments, is the limitation of activities and scale along with the optimal allocation of resources. This study provides a basis on how policies can be designed for enhancing the total factor productivity growth of the informal sector.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuhe Wang ◽  
Gui Ye ◽  
Chenli Zheng ◽  
Shilian Zhang

PurposeSince China's accession of the World Trade Organization (WTO), its construction industry has attained unprecedented growth. However, for the sources of this enormous growth, a controversy regarding the total factor productivity growth (TFPG) still remains in production practice and extant studies. In view of this, the purpose of this paper is to measure TFPG and to explore its sources in the industry post-WTO accession.Design/methodology/approachThis study presents an innovative source analysis of TFPG. Stochastic frontier approach is adopted to measure TFPG and to explore its sources by decomposing TFPG into technical progress (TP), technical efficiency change (TEC), allocative efficiency change (AEC) and scale efficiency change (SEC). Although China joined WTO in 2001, to provide an effective baseline, the study period is from 2000 to 2017.FindingsThe empirical results reveal that TFPG presented an overall downward evolutionary trend, but it still maintained a high growth post-WTO accession. From the perspective of decomposition, TP was the main source of TFPG. Furthermore, as a neglected source, interaction effects among TP, TEC, AEC and SEC have been demonstrated to have a significant influence on the cumulative TFPG.Practical implicationsTo make the results be reliable, the authors discuss the empirical findings mainly by revealing the reasons behind the evolutions of TFPG and its sources. Based on these revealed reasons, government and policy makers can further refine and summarize some more detailed and targeted policy implications to improve TFPG.Originality/valueBy providing many empirical evidences to solve the aforesaid TFPG controversy, this paper, therefore, enriches the body of knowledge on growth theories, especially at the level of industrial economics.


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