Economic Thought and Practice, , 2026.
Preliminary communication
https://doi.org/10.17818/EMIP/2026/29
EFFICIENCY IN THE CROATIAN PHARMACEUTICAL SECTOR: A DECOMPOSITION APPROACH USING WDEA AND MPI
Andrea Arbula Blecich
orcid.org/0000-0002-1379-6410
; University of Rijeka, Faculty of Economics and Business, Croatia
Nikolina Dukić Samaržija
; University of Rijeka, Faculty of Economics and Business, Croatia
*
Tihana Jaklenec
orcid.org/0009-0002-3026-0615
; University of Rijeka, Faculty of Economics and Business, Croatia
* Corresponding author.
Abstract
The Croatian pharmaceutical industry is a strategically important sector of the national economy, operating in a highly regulated market subject to strong international competition. This paper examines the efficiency and productivity of seven Croatian pharmaceutical manufacturers (NACE Rev. 2, Division 21.20) from 2018 to 2024 using Window Data Envelopment Analysis (WDEA) and the Malmquist Productivity Index (MPI). The sample comprises firms accounting for 93% of total sector revenue. Employee costs, total assets, and material expenses were used as inputs, while operating revenues and EBIT were treated as outputs. The results indicate that inefficiency is mainly associated with managerial and organisational factors rather than inappropriate production scale. The strongest productivity growth occurred in 2019/2020 (MPI +73.4%), followed by a decline in 2020/2021 and 2021/2022 due to lower technical efficiency, although technological change remained positive during most of the period observed. The findings highlight the importance of managerial improvement and continuous investment in innovation for maintaining competitiveness and long-term resilience.
Keywords
pharmaceutical industry; efficiency; productivity; WDEA; Malmquist Productivity Index (MPI)
Hrčak ID:
347651
URI
Publication date:
9.6.2026.
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