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 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.

scholarly journals Are Our Export-Oriented Industries Technically More Efficient?

2015 ◽  
Vol 54 (2) ◽  
pp. 97-121
Author(s):  
Tariq Mahmood ◽  
Ejaz Ghani ◽  
Musleh Ud Din .
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Returns To Scale ◽  
Manufacturing Industries ◽  
Data Envelopment ◽  
Frontier Analysis ◽  
Analysis Technique ◽  
Control Apparatus

This paper makes a comparison of technical efficiency scores between groups of exporting and non-exporting industries. Using data from Census of Manufacturing Industries in Pakistan (2005-06), technical efficiency scores of 102 large scale manufacturing industries are estimated. Stochastic Frontier Analysis as well as Data Envelopment Analysis technique are used to estimate technical efficiency scores. In Stochastic Frontier Analysis Translog and Cobb-Douglass Production Functions are specified, whereas in Data Envelopment Analysis technique, efficiency scores are computed under the assumptions of Constant Returns to Scale as well as Variable Returns to Scale. Industries showing high technical efficiency include Tobacco Products, Refined Petroleum Products, Carpets and Rugs, and Meat and Meat Products. Industries showing low technical efficiency include Refractory Ceramic Products, Electricity Distribution and Control Apparatus, Fish and Fish Products, Basic Precious Metals and Aluminum and its Products. Comparison of mean efficiency scores between exporting and non-exporting industries does not indicate any significant difference between efficiency scores across types of industries. JEL Classification: D24, L6, O14, F14 Keywords: Manufacturing Industries, Technical Efficiency, Stochastic Frontier Analysis, Data Envelopment Analysis, International Trade

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