The Icelandic Economy: A Victim of the Financial Crisis or Simply Inefficient?
Iceland, one of the smallest European economies, was hit severely by the 2008-financial crisis. This paper uses a firm-level Community Innovation Survey (CIS) data set to consider the economy in the period preceding the collapse of its financial system. We examine the linkage between the crisis and innovativeness from the perspective of technical efficiency by means of the Data Envelopment Analysis of 204 randomly selected firms. The results suggest that a substantial fraction of the Icelandic firms can be classified as non-efficient in their production process. The production scale of many manufacturing firms is too small to be considered technically efficient, while services firms typically use excessive resources in their production process. A remarkably weak performance in transforming R&D and labor efforts into successful innovations is observed. Based on the empirical results, suitable policy implications are suggested to remedy the inoptimal production structure and help economic recovery.
|Date of creation:||Sep 2009|
|Date of revision:||Sep 2009|
|Contact details of provider:|| Postal: 599 Gwanak-Ro, Gwanak-Gu, Seoul 151-744|
Web page: http://temep.snu.ac.kr/
More information through EDIRC
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.:
- Dimara, Efthalia & Skuras, Dimitris & Tsekouras, Kostas & Tzelepis, Dimitris, 2008. "Productive efficiency and firm exit in the food sector," Food Policy, Elsevier, vol. 33(2), pages 185-196, April.
- Fulvio Castellacci & Jinghai Zheng, 2010.
"Technological regimes, Schumpeterian patterns of innovation and firm-level productivity growth,"
Industrial and Corporate Change,
Oxford University Press, vol. 19(6), pages 1829-1865, December.
- Castellacci, Fulvio & Zheng, Jinghai, 2010. "Technological regimes, Schumpeterian patterns of innovation and firm level productivity growth," MPRA Paper 27588, University Library of Munich, Germany.
- William W. Cooper & Kyung Sam Park & Gang Yu, 1999. "IDEA and AR-IDEA: Models for Dealing with Imprecise Data in DEA," Management Science, INFORMS, vol. 45(4), pages 597-607, April.
- Keh, Hean Tat & Chu, Singfat, 2003. "Retail productivity and scale economies at the firm level: a DEA approach," Omega, Elsevier, vol. 31(2), pages 75-82, April.
- Duzakin, Erkut & Duzakin, Hatice, 2007. "Measuring the performance of manufacturing firms with super slacks based model of data envelopment analysis: An application of 500 major industrial enterprises in Turkey," European Journal of Operational Research, Elsevier, vol. 182(3), pages 1412-1432, November.
- Pentzaropoulos, G. C. & Giokas, D. I., 2002. "Comparing the operational efficiency of the main European telecommunications organizations: A quantitative analysis," Telecommunications Policy, Elsevier, vol. 26(11), pages 595-606, December.
- Wu, Zai Bin & Yeung, Godfrey & Mok, Vincent & Han, Zhaozhou, 2007. "Firm-specific knowledge and technical efficiency of watch and clock manufacturing firms in China," International Journal of Production Economics, Elsevier, vol. 107(2), pages 317-332, June.
- Tsai, Hsiang-Chih & Chen, Chun-Mei & Tzeng, Gwo-Hshiung, 2006. "The comparative productivity efficiency for global telecoms," International Journal of Production Economics, Elsevier, vol. 103(2), pages 509-526, October.
- Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998.
"Research, Innovation And Productivity: An Econometric Analysis At The Firm Level,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 7(2), pages 115-158.
- Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc.
- Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
- Sueyoshi, Toshiyuki, 1999. "Tariff structure of Japanese electric power companies: An empirical analysis using DEA," European Journal of Operational Research, Elsevier, vol. 118(2), pages 350-374, October.
- Zhu, Joe, 2000. "Multi-factor performance measure model with an application to Fortune 500 companies," European Journal of Operational Research, Elsevier, vol. 123(1), pages 105-124, May.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Brown, Rayna, 2006. "Mismanagement or mismeasurement? Pitfalls and protocols for DEA studies in the financial services sector," European Journal of Operational Research, Elsevier, vol. 174(2), pages 1100-1116, October.
- Guan, Jian Cheng & Yam, Richard C.M. & Mok, Chiu Kam & Ma, Ning, 2006. "A study of the relationship between competitiveness and technological innovation capability based on DEA models," European Journal of Operational Research, Elsevier, vol. 170(3), pages 971-986, May.
- Hall, Bronwyn H. & Mairesse, Jacques, 1995.
"Exploring the relationship between R&D and productivity in French manufacturing firms,"
Journal of Econometrics,
Elsevier, vol. 65(1), pages 263-293, January.
- Bronwyn H. Hall & Jacques Mairesse, 1992. "Exploring the Relationship Between R&D and Productivity in French Manufacturing Firms," NBER Working Papers 3956, National Bureau of Economic Research, Inc.
- Hans Loof & Almas Heshmati, 2006.
"On the relationship between innovation and performance: A sensitivity analysis,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
- Lööf, Hans & Heshmati, Almas, 2001. "On the Relationship between Innovation and Performance: A sensitivity Analysis," SSE/EFI Working Paper Series in Economics and Finance 0446, Stockholm School of Economics, revised 01 Oct 2001.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Soteriou, Andreas C. & Zenios, Stavros A., 1999. "Using data envelopment analysis for costing bank products," European Journal of Operational Research, Elsevier, vol. 114(2), pages 234-248, April.
- Bozec, Richard & Dia, Mohamed, 2007. "Board structure and firm technical efficiency: Evidence from Canadian state-owned enterprises," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1734-1750, March.
- Bergendahl, Goran & Lindblom, Ted, 2008. "Evaluating the performance of Swedish savings banks according to service efficiency," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1663-1673, March.
- Yang, Ji-Chung, 2006. "The efficiency of SMEs in the global market: Measuring the Korean performance," Journal of Policy Modeling, Elsevier, vol. 28(8), pages 861-876, November.
When requesting a correction, please mention this item's handle: RePEc:snv:dp2009:200916. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jorn Altmann)
If references are entirely missing, you can add them using this form.