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Efficiency of the Automotive Industry in the Visegrad Group

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  • Kovárník Richard

    (Mendel University in Brno, Faculty of Business and Economics, Zemědělská 1, 613 00, Brno, Czech Republic)

  • Staňková Michaela

    (Mendel University in Brno, Faculty of Business and Economics, Department of Statistics and Operation Analysis, Zemědělská 1, 613 00, Brno, Czech Republic)

Abstract

This article assesses the production efficiency of automotive sector companies in the V4 countries. The automotive sector has undergone dramatic changes in recent years, and its future development is still unclear. The assessment of company efficiency thus represents an important tool that could support decision-making on the future of this sector. Unfortunately, comprehensive studies based on micro-data on companies are not yet available. This article evaluates production (technical) efficiency based on accounting data of individual companies in the V4 countries using the parametric method of stochastic frontier analysis. In these analyses, efficiency is examined not only from the point of view of a country but also with respect to the size of a company. The empirical results show that not only country but also the size of a company are factors that have a statistically significant effect on company efficiency. Small companies struggle to keep up with their competitor and in general have the lowest efficiency ratings.

Suggested Citation

  • Kovárník Richard & Staňková Michaela, 2023. "Efficiency of the Automotive Industry in the Visegrad Group," LOGI – Scientific Journal on Transport and Logistics, Sciendo, vol. 14(1), pages 12-23, January.
    • Handle: RePEc:vrs:logitl:v:14:y:2023:i:1:p:12-23:n:2
    DOI: 10.2478/logi-2023-0002
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    1. Kovárník Richard & Staňková Michaela, 2023. "Assessing the Technical Efficiency of European Companies in the Automotive Sector," LOGI – Scientific Journal on Transport and Logistics, Sciendo, vol. 14(1), pages 251-262, January.

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