Original scientific paper
https://doi.org/10.1515/bsrj-2016-0013
Application of the Nonparametric DEA Meta-frontier Approach with Undesirable Outputs in the Case of EU Regions
Jana Hančlová
; VŠB-Technical University of Ostrava, Faculty of Economics, Czech Republic
Lukáš Melecký
orcid.org/0000-0001-8889-6400
; VŠB-Technical University of Ostrava, Faculty of Economics, Czech Republic
Abstract
Background: The paper focusses on the efficiency evaluation of the EU-28 NUTS 2 regions production process according to the concept of the Regional Competitiveness Index 2013. Objectives: Production units are divided into four groups using the factors of regional competitiveness. Production technology also enables reduction of the undesirable outputs (a negative impact on health and long-term unemployment). Based on the analysis of distance of the production units from the efficiency frontiers, a directional output distance function assuming a constant return to scale is used. This approach thus respects the heterogeneity among the groups of regions. Methods/Approach: The nonparametric meta-frontier Data Envelopment Analysis approach was used in two steps. Firstly, the efficiency evaluation within each group of regions is provided and in the second step the meta-frontier is set down. For the measurement of the gap between the group-frontier and the meta-frontier, the technology gap ratios are provided. The paper also analyses environmental inefficiencies. Results: The obtained results indicate that a significant improvement of meta-technology ratio holds within the European context. Conclusions: The combination of empirical findings, with respect to technology gaps and environmental technology gaps, supports the evidence that traditional differences of technological frontiers formation are more significant in comparison to group frontiers constitution.
Keywords
competitiveness; directional distance function, efficiency; EU-28 regions; group-frontier; Regional Competitiveness Index 2013; meta-frontier; meta-technology ratio; technology gap inefficiency
Hrčak ID:
166325
URI
Publication date:
1.9.2016.
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