Evaluating Efficiency and Productivity Growth in Passenger Transportation Industry: Application of Stochastic Frontier Function

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Norani Azad Samaneh; KHODADAD KASHI FARHAD

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Journal Paper

Paper Information

Journal: THE JOURNAL OF PLANNING AND BUDGETING Year:2019 | Volume:24 | Issue:2 Page(s): 31-58

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Title

Evaluating Efficiency and Productivity Growth in Passenger Transportation Industry: Application of Stochastic Frontier Function

Author(s)

Norani Azad Samaneh | KHODADAD KASHI FARHAD | Issue Writer Certificate

Keywords

Total Factor ProductivityQ2

Scale EfficiencyQ2

Technical EfficiencyQ2

Technological Progress RateQ1

Airline TransportationQ1

Growth AccountingQ2

Stochastic FrontierQ3

Abstract

The main purpose of this study is to measure the productivity and efficiency of Iran’ s airline industry. To meet this ends, the data of 12 companies in the airline industry were used over the period 2011-2018. Also, this article sought to measure Total Factor Productivity, technological progress, Scale Efficiency, and changes in Technical Efficiency by using a Stochastic Frontier and parametric approaches. The results show that the highest Total Factor Productivity and change efficiency occurred in 2014. Moreover, among the effective factors on productivity, the change efficiency and economies of scale have the greatest impact. Although some of the companies exhausted all the scale economies, some still have not done that yet. Therefore, by increasing product scale and air fleet capacity, economies of scale can be exploited further. In addition, the results imply that increasing the market share of each company leads to a reduction of inefficiency in this industry. Thus market share being aligned with technological progress, Scale Efficiency and change efficiency are the determining factors in enhancing Total Factor Productivity and efficiency in this industry.

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APA: Copy

Norani Azad, Samaneh, & KHODADAD KASHI, FARHAD. (2019). Evaluating Efficiency and Productivity Growth in Passenger Transportation Industry: Application of Stochastic Frontier Function. THE JOURNAL OF PLANNING AND BUDGETING, 24(2 ), 31-58. SID. https://sid.ir/paper/413673/en

Vancouver: Copy

Norani Azad Samaneh, KHODADAD KASHI FARHAD. Evaluating Efficiency and Productivity Growth in Passenger Transportation Industry: Application of Stochastic Frontier Function. THE JOURNAL OF PLANNING AND BUDGETING[Internet]. 2019;24(2 ):31-58. Available from: https://sid.ir/paper/413673/en

IEEE: Copy

Samaneh Norani Azad, and FARHAD KHODADAD KASHI, “Evaluating Efficiency and Productivity Growth in Passenger Transportation Industry: Application of Stochastic Frontier Function,” THE JOURNAL OF PLANNING AND BUDGETING, vol. 24, no. 2 , pp. 31–58, 2019, [Online]. Available: https://sid.ir/paper/413673/en

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