Studying Factors Influencing Technical Efficiency of Industrial Sector Among Different Regions (With Data Envelopement Analysis)

Azadinejad, Ali; Amadeh, Hamid; Emami Maibodi, Ali

doi:10.22059/jte.2014.50546

Studying Factors Influencing Technical Efficiency of Industrial Sector Among Different Regions (With Data Envelopement Analysis)

Document Type : Research Paper

Authors

Ali Azadinejad ¹

Hamid Amadeh ²

Ali Emami Maibodi ²

¹ Assistant Professor at Department of Economics, Ayatolah haeri maybod University

² Assistant Professor at Department of Economics, Allameh Tabatabaee University

10.22059/jte.2014.50546

Abstract

Technical efficiency of different sectors is important for economic policy making purposes. This study considering regions as independent decision-making units, measures technical efficiency of industrial sector for every region of the country and then examines its determinant factors.Generally influential factors of efficiency are classified in two main groups. First group includes the basic elements of production which have a direct effect on efficiency; these elements are inside the production function. The second group consists of environmental elements absent in the production function but indirectly influential on efficiency. The results show that labor, capital and energy inputs as direct elements, and number of production sites, the population, and income of employers in each region as environmental elements are the main determining factors of technical efficiency. Utilizing the new method of Anderson and Peterson (AP) is main contribution of this study.

Keywords

Anderson and Peterson method

data envelopement analysis

industrial sector

Technical efficiency