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Technical and scale efficiency of sugar and confectionary producers in 2006-2016. Does the size and legal stat us of enterprise matters ?

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  • Kozak, Sylwester

Abstract

The article empirically examines how the size and legal status of an enterprise influence the technical and scale efficiency of Polish food producers. Technical and scale efficiency indices are measured using the non-parametric DEA method. The study is based on the annual financial reports of 52 sugar and confectionery producers operating in 2006-2016. The analysis covers all enterprises in the sector, as well as groups of larger and smaller enterprises (distinguished by the median of assets), as well as groups of capital companies and cooperatives. Research has shown that enterprises were characterized by relatively high technical efficiency and scale efficiency in the range, respectively, between 82 and 93% and between 93 and 98%. All enterprises operated more efficiently in more favorable macroeconomic conditions. The level of enterprises’ technical and scale efficiency depends on the value of their assets and the legal status. Larger enterprises were less technically effective than smaller ones, but they made greater use of the effect of scale. Capital companies were more effective than cooperatives, but to a lesser extent used economy of scale.

Suggested Citation

  • Kozak, Sylwester, 2018. "Technical and scale efficiency of sugar and confectionary producers in 2006-2016. Does the size and legal stat us of enterprise matters ?," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2018(3).
    • Handle: RePEc:ags:paaero:293682
    DOI: 10.22004/ag.econ.293682
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