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Analyzing The Technical Efficiency Using Data Envelopment Analysis Method: The Case Of Gulf Cooperation Council Countries

Author

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  • BASHAYREH, Ala’

    (Faculty of Economics and Administrative Sciences, The Hashemite University, Zarqa, Jordan. Author-Name: ABDELHADI, Samer A.
    Faculty of Economic and Administration Sciences, Hashemite University, Zarqa, Jordan)

  • ALOMARI, Mohammad W.

    (Faculty of Economics and Administrative Sciences, The Hashemite University, Zarqa, Jordan.)

Abstract

Given the importance of technical efficiency for production process, the current study is measuring the technical efficiency in the Gulf Cooperation Council countries over the period 2009-2016. For this purpose, the study will employ the nonparametric model uses the linear programming by Data Envelopment Analysis (DEA) to calculate technical efficiency. Results revealed that Kuwait is operating by optimal size production in both frontiers, constant returns to scale (CRS), and variable returns to scale (VRS) and so it is considered as the benchmark for the rest of the Gulf Cooperation Council countries. On the other hand, the results showed that Bahrain, UAE, Oman and KSA do not operate within optimal size, which restrain them to perform the overall technical efficiency and scale efficiency.

Suggested Citation

  • BASHAYREH, Ala’ & ALOMARI, Mohammad W., 2021. "Analyzing The Technical Efficiency Using Data Envelopment Analysis Method: The Case Of Gulf Cooperation Council Countries," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 25(3), pages 44-55, September.
    • Handle: RePEc:vls:finstu:v:25:y:2021:i:3:p:44-55
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    scale efficiency; economic growth; Gulf Cooperation Council Pages: 44-55;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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