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Analyzing the efficiency performance of major Australian mining companies using bootstrap data envelopment analysis

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  • Hosseinzadeh, Ahmad
  • Smyth, Russell
  • Valadkhani, Abbas
  • Le, Viet

Abstract

We identify the balance of efficiency gains and losses for 33 Australian mining firms over the period 2008–2014 using bootstrap data envelopment analysis (DEA). We ascertain which companies climbed the efficiency ladder and which companies slipped back in efficiency over time. We find that mining companies involved in metal processing or mining services have been more efficient than those involved in exploration and extraction activities. Assuming variable returns to scale (VRS), on average, we find that mining firms could improve their performance between a minimum of 17% in 2010 and a maximum of 34% in 2008, relative to the best practice performers. We find that, overall, most mining companies became more efficient over time, with the top performers generally maintaining a ranking in the top third of companies in terms of efficiency throughout the period.

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  • Hosseinzadeh, Ahmad & Smyth, Russell & Valadkhani, Abbas & Le, Viet, 2016. "Analyzing the efficiency performance of major Australian mining companies using bootstrap data envelopment analysis," Economic Modelling, Elsevier, vol. 57(C), pages 26-35.
    • Handle: RePEc:eee:ecmode:v:57:y:2016:i:c:p:26-35
    DOI: 10.1016/j.econmod.2016.04.008
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    More about this item

    Keywords

    Australia; Mining companies; Efficiency; Data envelopment analysis; Bootstrap;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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