EXAMINING TECHNICAL EFFICIENCY AND PRODUCTIVITY OF INDUSTRIES IN WESTERN AZERBAIJAN USING THE PARAMETRIC AND NONPARAMETRIC METHODS

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DABAGH RAHIM; KOUHI LEILAN BABAK; JAVAHERIAN LEILA; LATIFI MAHSHID

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Journal: MAJLIS & RAHBORD Year:2015 | Volume:22 | Issue:83 Page(s): 305-333

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Information Journal Paper

Title

EXAMINING TECHNICAL EFFICIENCY AND PRODUCTIVITY OF INDUSTRIES IN WESTERN AZERBAIJAN USING THE PARAMETRIC AND NONPARAMETRIC METHODS

Author(s)

DABAGH RAHIM | KOUHI LEILAN BABAK | JAVAHERIAN LEILA | LATIFI MAHSHID | Issue Writer Certificate

Keywords

TECHNICAL EFFICIENCYQ2

SFAQ1

DATA COVERING ANALYSISQ2

INDUSTRY OF WESTERN AZERBAIJANQ2

Abstract

Nowadays, due to restrictions in production supplements, the best way to improve economic growth is to increase the productivity and efficiency. Firstly, these indexes need to be measured precisely. For more specific policy making and practical policies, it's necessary to have economic evaluations on national scale, in addition to economic index measurements and analyses on lower scales like local and provincial scales.So this paper is going to make it practical based on final available information by measuring efficiency and productivity of industries in Western Azerbaijan, including topl0 groups of industry whose ISIC codes are placed between 15 and 34, from 2002 till 2010.Efficiency and productivity have been calculated by applying two methods, Stochastic Frontier Analysis (SFA) which is a parametric method in econometrics, and the Data Envelopment Analysis (DEA), used as a non-parametric method by means of panel data. Results of analysis indicate that in addition to low productivity in most industry subgroups, their growth is extremely low. Besides, the efficiency change in the mentioned period is along with intensive fluctuations.Furthermore, the research results confirm the fact that ranking based on two studied approaches, SFA and DEA approaches, give approximately the same outcomes.

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