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Article

Fei Jin and Qi Zhang

This study aims to analyze the total factor productivity (TFP) performance of Chinese counties and cities over the period from 2007 to 2010. Chinese regional and…

Abstract

Purpose

This study aims to analyze the total factor productivity (TFP) performance of Chinese counties and cities over the period from 2007 to 2010. Chinese regional and urban–rural TFP performance are investigated by using county-level data, and the impact of the urbanization policy on TFP is discussed.

Design/methodology/approach

The data envelopment analysis (DEA)-Malmquist technique and Kumbhakar–Sun’s semi-parametric model are used for TFP change measurement and comparison. The county-level TFP performances are summarized and studied by statistical methods. Their spatial distribution is exhibited in a geographical thematic map.

Findings

The county-level analysis proves that China underwent a large-scale TFP decline over the period from 2007 to 2010. Statistically speaking, cities’ TFP growth is more positive than counties’; however, different provinces also have their regional characteristics. In addition, the Chinese Hukou (household registration) institution divides Chinese urbanization into halves, which have the opposite correlation on TFP growth.

Research limitations/implications

Because the collection of county-level data is enormous and costly, this study only focuses on a very short period (2007-2010) with estimated data. This TFP change analysis is limited to the short-term phenomenon around the 2008 international financial crisis.

Practical implications

This study provides a visual spatial distribution for county-level TFP change in China over the period 2007-2010. Results of the analysis demonstrate that the Chinese Hukou system is among the policy factors that can influence productivity in the course of urbanization.

Originality/value

The achievement of the first nationwide county-level TFP change study for economic growth in China is innovative. This study provides a unique perspective for understanding productivity performance at the regional level over the period investigated, which provides invaluable data for investigating the impact of urbanization and the rural–urban gap on TFP growth.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 8 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Content available
Article

Giselle Cappellesso, Cristiano Moreira Raimundo and Karim Marini Thomé

This study aims to measure the intensity of innovation in the Brazilian food sector and compares it to other manufacturing sectors in the country.

Abstract

Purpose

This study aims to measure the intensity of innovation in the Brazilian food sector and compares it to other manufacturing sectors in the country.

Design/methodology/approach

The authors used economic and financial data provided by the annual survey of industry [Pesquisa Industrial Anual (PIAs), in Portuguese] and other supporting data provided by the survey of innovation [Pesquisa de Inovação (PINTEC), in Portuguese] and the classification of technology intensity (TI) proposed by the Organization for Economic Co-operation and Development. The authors subsequently applied the Malmquist index in addition to the data envelopment analysis to measure innovation.

Findings

The results reveal that the Brazilian food sector is classified as a sector with low TI and investment in research and development (R&D), which represents one of the lowest rates when compared to other sectors. Thus, the Brazilian food sector is far from achieving its full potential. Nevertheless, the authors noticed that the sugar refinery industry showed an evolution in its technology frontier and presented a frequency of innovation similar to the average of high-tech industries.

Originality/value

This study contributes to the debate on innovation in the food sector, emphasizing the need to accomplish higher investments in R&D to increase the productivity of the sector.

Details

Innovation & Management Review, vol. 17 no. 4
Type: Research Article
ISSN: 2515-8961

Keywords

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Article

Tesfatsion Sahlu Desta

This paper aims to examine whether the African commercial banks selected as the best African banks by Global Finance Magazine really are the best.

Abstract

Purpose

This paper aims to examine whether the African commercial banks selected as the best African banks by Global Finance Magazine really are the best.

Design/methodology/approach

Panel data envelopment analysis (DEA) was used, as well as the Malmquist total factor productivity index, to distinguish productive banks from unproductive banks. Nineteen commercial banks were selected from the 30 best African banks as identified by the Global Finance Magazine.

Findings

Of the 19 banks, five were found to be unproductive. Bank productivity was attributed mainly to technological change, and different methods marked different results, for example, the regional winner bank (Standard Bank of South Africa) selected by Global Finance Magazine ranked ninth in this study, whereas the Bank Windhoek Limited, Namibia, ranked first.

Practical implications

The study confirms the applicability of DEA for the banking industry. The model shows variability among the banks’ efficiency and productivity and provides different results to the Global Finance Magazine’s best bank selection. For example, the Standard Bank of South Africa, which is selected as the regional winner, is now ranked ninth under the DEA Malmquist’s total factor productivity.

Originality/value

The study shows that the DEA model can be applied not only for analysing the firm’s efficiency but also for objective rating, ranking and selecting best banks.

Details

Meditari Accountancy Research, vol. 24 no. 4
Type: Research Article
ISSN: 2049-372X

Keywords

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Abstract

Purpose

Cement as one of the major components of construction activities, releases a tremendous amount of carbon dioxide (CO2) into the atmosphere, resulting in adverse environmental impacts and high energy consumption. Increasing demand for CO2 consumption has urged construction companies and decision-makers to consider ecological efficiency affected by CO2 consumption. Therefore, this paper aims to develop a method capable of analyzing and assessing the eco-efficiency determining factor in Iran’s 22 local cement companies over 2015–2019.

Design/methodology/approach

This research uses two well-known artificial intelligence approaches, namely, optimization data envelopment analysis (DEA) and machine learning algorithms at the first and second steps, respectively, to fulfill the research aim. Meanwhile, to find the superior model, the CCR model, BBC model and additive DEA models to measure the efficiency of decision processes are used. A proportional decreasing or increasing of inputs/outputs is the main concern in measuring efficiency which neglect slacks, and hence, is a critical limitation of radial models. Thus, the additive model by considering desirable and undesirable outputs, as a well-known DEA non-proportional and non-radial model, is used to solve the problem. Additive models measure efficiency via slack variables. Considering both input-oriented and output-oriented is one of the main advantages of the additive model.

Findings

After applying the proposed model, the Malmquist productivity index is computed to evaluate the productivity of companies over 2015–2019. Although DEA is an appreciated method for evaluating, it fails to extract unknown information. Thus, machine learning algorithms play an important role in this step. Association rules are used to extract hidden rules and to introduce the three strongest rules. Finally, three data mining classification algorithms in three different tools have been applied to introduce the superior algorithm and tool. A new converting two-stage to single-stage model is proposed to obtain the eco-efficiency of the whole system. This model is proposed to fix the efficiency of a two-stage process and prevent the dependency on various weights. Converting undesirable outputs and desirable inputs to final desirable inputs in a single-stage model to minimize inputs, as well as turning desirable outputs to final desirable outputs in the single-stage model to maximize outputs to have a positive effect on the efficiency of the whole process.

Originality/value

The performance of the proposed approach provides us with a chance to recognize pattern recognition of the whole, combining DEA and data mining techniques during the selected period (five years from 2015 to 2019). Meanwhile, the cement industry is one of the foremost manufacturers of naturally harmful material using an undesirable by-product; specific stress is given to that pollution control investment or undesirable output while evaluating energy use efficiency. The significant concentration of the study is to respond to five preliminary questions.

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Article

Supran Kumar Sharma and Raina Dalip

The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants…

Abstract

Purpose

The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants during the post-reform period.

Design/methodology/approach

The present study is a novel attempt as it has used pooled data for a duration of 15 years (i.e. 1997/1998-2010/2011) from 59 selected banks for estimating the Hicks-Moorsteen (HM) total factor productivity (TFP) index.

Findings

Poor technical efficiency has experienced with scale efficiency change exerting dominant factors; whereas relatively better productivity growth has been experienced by the banks with major contributions from technical change components. The study found relatively underestimated efficiency and productivity levels by traditional data envelopment analysis-based Malmquist index. Additionally, the study brings into account the results for external and environmental determining factors contributing to the TFP growth.

Originality/value

Using HMTFP indices has helped to eliminate certain drawbacks of data envelopment and provided the more elaborative decomposition of productivity growth along with their components so as to have lucid and multidimensional insights about the performance of the Indian banking industry after the initiation of financial reforms.

Details

International Journal of Productivity and Performance Management, vol. 63 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

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Article

Wantao Yu and Ramakrishnan Ramanathan

The paper's aim is to assess performance of firms in the UK retail sector.

Abstract

Purpose

The paper's aim is to assess performance of firms in the UK retail sector.

Design/methodology/approach

Economic efficiencies of 41 retail companies working in the UK between 2000 and 2005 are examined in this study using three related methodologies: data envelopment analysis (DEA), Malmquist productivity index (MPI), a bootstrapped Tobit regression model. DEA is used to calculate technical and scale efficiencies of companies. Two outputs (turnover, profit before taxation) and three inputs (total assets, shareholders funds, and number of employees) are employed for the efficiency measurement. MPI is used to analyze the patterns of efficiency change over the six year period 2000‐2005. DEA efficiencies are then used to test important hypotheses on the impact of environmental variables, namely head office location, type of ownership, years of incorporation, legal form and retail characteristic, on the functioning of the UK retail sector using bootstrapped Tobit regression.

Findings

DEA analysis has shown that only ten retail companies are considered as efficient under CRS assumption, and 16 firms under VRS assumption in 2005. MPI results have indicated that about 50 percent of retail companies have registered progress in terms of MPI during 2000 and 2005. Twenty out of 41 retail companies have adopted advanced and efficient retailing technologies during this period. Three environmental variables, namely the type of ownership, legal form and retail characteristic, have been found to play significant roles influencing retail efficiency using bootstrapped Tobit regression.

Research limitations/implications

Data availability has limited the level of analysis in some parts of this study, especially in the bootstrapped Tobit regression.

Originality/value

This study seems to be the first in applying productivity analysis using DEA for the UK retail sector.

Details

International Journal of Retail & Distribution Management, vol. 36 no. 11
Type: Research Article
ISSN: 0959-0552

Keywords

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Article

Anatoliy G. Goncharuk

The paper aims to test the hypothesis about increasing the efficiency of gas distribution companies in the period of high gas prices on the example of Ukraine that is…

Abstract

Purpose

The paper aims to test the hypothesis about increasing the efficiency of gas distribution companies in the period of high gas prices on the example of Ukraine that is highly dependent on this energy source.

Design/methodology/approach

The basic and super-efficiency models of data envelopment analysis (DEA), Malmquist total factor productivity index, three-factor production function and other tools are used to analyse the efficiency of gas distribution companies. Some factors are examined for their impact on efficiency. The results are based on the samples of 33 Ukrainian gas distribution companies.

Findings

The author detects the decreasing returns to scale in the gas distribution sector, which means that Ukrainian gas companies get advantage reducing the volume of gas supply. Rise in prices for imported gas is reflected positively not only on the income of the exporting Russian supplier Gazprom, but also on the profitability of Ukrainian gas distribution companies. The losses associated with the policy decisions regarding a pricing of imported natural gas moved on the consumers of natural gas – the manufacturing sector of the economy and the population. Reallocation of net profit from the key export sectors of Ukraine in the gas sector is mainly caused by the fault of the state regulatory body.

Research limitations/implications

The research is limited by single industry and by relatively short data set. The former is explained by requirement of technology (product, service) homogeneity when using DEA tools. The latter is connected with specificity of the industry and generally little numbers of firms in it.

Practical implications

The results of researching contain the data and recommendations to companies' management and a state regulatory body to correct and optimize their decisions to make gas distribution system and economy more effective. These results can be practicable for companies' management, present and potential investors and proprietors, regulative public authority. It is possible to use the results of this research to make study for the other industries.

Originality/value

This is the first paper that studies the impact of high natural gas prices on the economy and gas distribution system of Ukraine.

Details

International Journal of Energy Sector Management, vol. 7 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

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Article

Viverita and M. Ariff

The purpose of this paper is to develop a methodology to study profit vs non‐profit seeking firms usefully to compare corporate performance. It aims to apply the…

Abstract

Purpose

The purpose of this paper is to develop a methodology to study profit vs non‐profit seeking firms usefully to compare corporate performance. It aims to apply the methodology to measure if state vs non‐state firms with different objectives are comparable in performance. If relevant, the paper also aims to comment on the applicability of this method to analysis of other firms, e.g. Islamic banks in Indonesia.

Design/methodology/approach

The paper applies Malmquist data envelopment analysis method to different classes of firms: state vs non‐state firms; aggregated at the industry and at national levels; and develop appropriate time trend analysis as well. Findings – The common belief that all state firms are inefficient is not upheld by test results: in some sectors (agriculture and chemicals) state firms are more efficient than private firms. Efficiency is very low, but did improve over time across all sectors and types of firms particularly before the 1997‐1998 and in recent years. Efficiency is mostly achieved through technology adoption (technological change) accounts for most efficiency gains.

Research limitations/implications

This study overturns findings of many accounting performance based studies and revisits policy implications.

Practical implications

No one policy fits all in Indonesia for privatization programme.

Originality/value

The paper provides more valid methodology to compare state firms with non‐state firms for the first time.

Details

Managerial Finance, vol. 34 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

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Article

Aradhana Gandhi and Ravi Shankar

– The purpose of this paper is to analyze the performance of Indian retailers in recent past and derive meaningful insight for practicing managers in this area.

Abstract

Purpose

The purpose of this paper is to analyze the performance of Indian retailers in recent past and derive meaningful insight for practicing managers in this area.

Design/methodology/approach

This paper analyses the economic efficiencies of select Indian retailers using three related methodologies: Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI) and Bootstrapped Tobit Regression.

Findings

DEA analysis has shown that five retail firms out of selected 18 are found as efficient under the CCR model of DEA and seven out of 18 retail firms are efficient under the BCC model of DEA. MPI results indicate that 61 percent of the firms have progressed in terms of the MPI during the period under consideration. The Bootstrapped Tobit Regression shows that number of retail outlets and mergers and acquisitions can be considered as the driving forces influencing efficiency of retailers in India.

Research limitations/implications

The paper has a limitation with reference to the availability of data for a few retail outlets, especially in the modeling through the Bootstrapped Tobit Regression.

Originality/value

This study seems to be the first in applying productivity analysis using DEA, MPI and Bootstrapped Tobit Regression for the Indian retail sector.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 6
Type: Research Article
ISSN: 0959-0552

Keywords

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Article

Kaustav Misra, Esra Memili, Dianne H.B. Welsh, Surender Reddy and Gail E. Sype

The purpose of this paper is to investigate the factors influencing the total factor productivity (TFP) gap between the USA and eight Latin American countries for the…

Abstract

Purpose

The purpose of this paper is to investigate the factors influencing the total factor productivity (TFP) gap between the USA and eight Latin American countries for the period of 1970-2000.

Design/methodology/approach

The paper provides an explicit application of TFP estimation by employing a growth accounting approach (Solow Residual) in the presence of non-constant returns to scale and a non-parametric approach (DEA – Malmquist Index) while relaxing the scale-related constraint. A macro-based economic model of innovator and follower countries is employed to explore the linkage between technology gaps and innovations, labor productivity, trade openness, foreign direct investment, and adult workforce illiteracy rates. A pooled model and a fixed effects model are used to determine the factors of the technology gap between the innovator and the follower countries.

Findings

The results show that the labor productivity gap, adult work force illiteracy rates, patent filing gap, and trade openness are significant determinants of the technology gap between innovator and follower country.

Practical implications

Latin American countries would benefit from the technology diffusion from an innovator country; but a minimum threshold of human capital, such as adult workforce illiteracy rates and patent filing has to be met. The authors find government policies on trade openness also have large effects on technology limitations in foreign countries.

Originality/value

This paper is of value to researchers, policy makers, and economic development specialists trying to improve the rate of technology adoption and innovation.

Details

Cross Cultural Management, vol. 22 no. 4
Type: Research Article
ISSN: 1352-7606

Keywords

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