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Technical Efficiency and Productivity Change in the European Union with Undesirable Output Considered

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  • Djula Borozan

    (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek, Gajev trg 7, 31000 Osijek, Croatia)

Abstract

Global competition and climate change are changing the nature of economic activity and impose the urgent need to have environmentally sensitive productivity growth. The paper addresses both desirable and undesirable output to assess technical efficiency and productivity changes, as well as evaluate the importance of an energy input in the production function and productivity change differentials in the European Union (EU) over the period 2000–2018. To that end, it uses output-oriented data envelopment analysis and Malmquist productivity analysis. The results reveal that the EU is facing significant challenges due to a decreasing trend in technical efficiency and slow productivity growth. The absence of major improvements in human resource performance has reduced the benefits of technological innovations which are the main source of productivity growth. Additionally, the results show that energy use did not critically influence efficiency and productivity.

Suggested Citation

  • Djula Borozan, 2021. "Technical Efficiency and Productivity Change in the European Union with Undesirable Output Considered," Energies, MDPI, vol. 14(16), pages 1-15, August.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:16:p:4937-:d:613030
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    Cited by:

    1. Djula Borozan & Dubravka Pekanov Starcevic, 2021. "Analysing the Pattern of Productivity Change in the European Energy Industry," Sustainability, MDPI, vol. 13(21), pages 1-14, October.

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