The Most Efficient Czech SME Sectors: An Application of Robust Data Envelopment Analysis

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The Most Efficient Czech SME Sectors: An Application of Robust Data Envelopment Analysis

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Jan Průša () (Faculty of Economics, University of Cambridge, Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)

Abstract

This paper analyzes the efficiency of Czech small and medium enterprises. We use the data from 2002 to 2005 of thirty manufacturing industries, each divided into five subgroups according to the number of employees. We employ standard and advanced robust data envelopment analysis (DEA) to obtain cross-sectional rankings of individual industries. The results reveal substantial variance in the efficiency scores, which is only partly removed by the robust DEA specification. We found that the majority of firms operate below full efficiency; with only a few companies (industries) belonging to top performers. Average efficiency lies between 50 to 70 per cent of the best sectors. We conclude that only a minor proportion of Czech SME concentrate on high value added production.

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Paper provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its series Working Papers IES with number 2009/03.

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Length: 16 pages
Date of creation: Jan 2009
Date of revision: Jan 2009
Handle: RePEc:fau:wpaper:wp2009_03

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Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-01-17 (All new papers)
NEP-EFF-2009-01-17 (Efficiency & Productivity)
NEP-TRA-2009-01-17 (Transition Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Cinzia Daraio & Leopold Simar, 2005. "Conditional Nonparametric Frontier Models for Convex and Non Convex Technologies: a Unifying Approach," LEM Papers Series 2005/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
Other versions:
- Cinzia Daraio & Léopold Simar, 2007. "Conditional nonparametric frontier models for convex and nonconvex technologies: a unifying approach," Journal of Productivity Analysis, Springer, vol. 28(1), pages 13-32, October. [Downloadable!] (restricted)

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This page was last updated on 2009-11-1.

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