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Efficiency and Productivity in the Spanish Food Distribution Sector

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  • Palomares, Rafaela Dios

Abstract

This study investigated the efficiency and productivity change of a sample of food distribution units (MERCAs) in Spain over the 1.997-1.999 period, applying non-parametric frontier methodology in a sales efficiency framework. We specified a mean sales model composed of two blocks of variables, the production block, and the marketing management block. Then we applied output oriented DEA methodology to perform the efficiency analysis, also taking into account the overall efficiency decomposition into pure and scale efficiency. The Malmquist index was calculated in order to analyse the components of the productivity change. The mean pure sales efficiency index was high, around 0.8, the mean scale index being 0,9. As appears from the results, six food distribution units were efficient, but some of the wholesale markets need to adapt their sales technology in order that their input bundle reaches a Most Productive Scale Size unit. We found no evidence of technical change during the period considered, but concluded that a notable scale efficiency change took place during the studied period. To summarise, we conclude that improvement in sales efficiency could be reached in the studied sector in both the pure and the scale efficiency.

Suggested Citation

  • Palomares, Rafaela Dios, 2002. "Efficiency and Productivity in the Spanish Food Distribution Sector," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24828, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae02:24828
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    File URL: http://purl.umn.edu/24828
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    1. D. S. Prasada Rao & Bart van Ark, 2013. "Introduction," Chapters,in: World Economic Performance, chapter 1, pages 1-6 Edward Elgar Publishing.
    2. Kristian S. Palda, 1964. "The Measurement of Cumulative Advertising Effects," The Journal of Business, University of Chicago Press, vol. 38, pages 162-162.
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    Cited by:

    1. Muhammad AFZAL & Maryam AYAZ, 2013. "Efficiency of Food Sector of Pakistan-A Dea Analysis," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(10), pages 1310-1330, October.

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