The Technical Efficiency of Tunisian Ports: Comparing Data Envelopment Analysis and Stochastic Frontier Analysis Scores

Open access

Abstract

Maritime transportation for Tunisia plays an important role in trade exchange with other countries. Therefore, the objective of this paper is to measure the efficiency scores of 7 seaports in Tunisia by applying the Stochastic Frontier Analysis (SFA) with Cobb-Douglas production function and Data envelopment analysis (DEA) with CCR and BCC models. The annual data collected cover the 2007-2017 period for each port. Thus, the sample size for the analysis comprises a total of 77 observations. The empirical result shows that the total average scores of operating efficiency scores were DEA-BCC (0.746) >SFACD (0.536)>DEA-CCR (0.334) from 2007 to 2017. Given these results, the port of Gabes can be considered as the best efficient port in the 3 models (DEA-BCC, DEA-CCR and SFA-CD).

[1] Aigner, D., Lovell, C. & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics. 6(1), 21–37. DOI: 10.1016/0304-4076(77)90052-5

[2] Al-Eraqi, A., Adli, M. & Khader, M. & Barros, C.P. (2008). Efficiency of Middle Eastern and East African Seaports: Application of DEA Using Window Analysis. European journal of scientific research. 23 (4), 597-612. DOI: 10.1504/IJSTL.2009.027533.

[3] Battese, G.E. & Corra, G.S. (1977). Estimation of a production frontier model: With application to the pastoral zone of Eastern Australia. Australian Journal of Agricultural Economics. 21(2) : 169–179. DOI/10.1111/j.1467-8489.1977.tb00204.x.

[4] Banker, R. D., Charnes, A. & Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Journal of Management Science. 30 (9), 1078-1092. 10.1287/mnsc.30.9.1078.

[5] Barros, C.P. & Athanassiou, M. (2004). Efficiency in European Seaports with DEA: Evidence from Greece and Portugal. Maritime Economics & Logistics. 6 (2), 122-140. DOI: 10.1057/palgrave.mel.9100099 ·

[6] Barros, C.P. (2005). Decomposing Growth in Portuguese Seaports: A Frontier Cost Approach. Maritime Economics & Logistics. 7 (4), 297-315. DOI: 10.1057/palgrave.mel.9100140 ·

[7] Barros, C.P., Chen, Z. & Wanke, P. (2016). Efficiency in Chinese seaports: 2002–2012Maritime Economics & Logistics., Palgrave Macmillan; International Association of Maritime Economists (IAME). 18(3), 295-316. DOI: 10.1057/mel.2015.4

[8] Charnes, A., Cooper, W. W. & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research. 2 (6), 429-444. DOI: 10.1016/0377-2217(78)90138-8

[9] Charnes, A., Cooper, W. W. & Golany, B. & Seiford, L. M. & Stutz, J. (1985). Foundations of Data Envelopment Analysis for Pareto-Koopmans Efficiency Empirical Production Functions. Journal of Econometrics. 30 (1/2), 91-107. DOI: 10.1016/0304-4076(85)90133-2.

[10] Charnes, A., Cooper, W. W. & Lewin, AY. & Seiford, LM. (1995), Data Envelopment Analysis: Theory, Methodology and Applications. Kluwer Academic Publishers, Boston. 20 (70), 1099-1118. DOI:10.1007/978-94-011-0637-5

[11] Chin, A., Tongzon, J. (1998). Maintaining Singapore as a major shipping and air transport hub”. Competitiveness of the Singapore Economy. Singapore University Press, Singapore, 83-11410.1142/9789812839626_0003. DOI: .

[12] Coelli, T.J. (1996 a). A Guide to DEAP Version 2.1: A Data Envelopment Analysis (Computer) Program. CEPA Working Paper 96/08, Department of Econometrics, University of New England, Armidale. DOI: 10.12691/ijdeaor-1-3-1.

[13] Coelli, T.J. (1996 b). A Guide to FRONTIER Version 4.1: A Computer Program for StochasticFrontier Production and Cost Function Estimation. CEPA Working Paper No. 96/07, Centre for Efficiency and Productivity Analysis, University of New England, Armidale. DOI: 10.12691/ajrd-4-5-2

[14] Coto-Millan, P., Banos-Pino, J. & Rodriguez-Alvarez, A. (2000). Economic Efficiency in Spanish ports: some empirical evidence. Maritime Policy and Management. 27 (2), 169-174. DOI: 10.1080/030888300286581

[15] Cullinane, K. P. B., Song, D. W. & Gray, R. (2002). A stochastic frontier model of the efficiency of major container terminals in Asia: Assessing the influence of administrative and ownership structures. Transportation Research Part A. 36(8), 743–762. DOI: 10.1016/S0965-8564(01)00035-0.

[16] Cullinane, K. P. B. & Song, D. W. (2003). A stochastic frontier model of the productive efficiency of korean container terminals. Journal of Economics and Business. 35 (3), 433-462. DOI: 10.1080/00036840210139355.

[17] Cullinane, K. P. B., Song, D.W., Ping, J. & Wang, T.F. (2004). An Application of DEA Windows Analysis to Container Port Production Efficiency. Review of Network Economics. 3 (2), 184-206. DOI: 10.2202/1446-9022.1050.

[18] Cullinane, K. P. B. & Wang, T.F. (2006). The efficiency of European container ports: A crosssectional data envelopment analysis. International Journal of Logistics: Research and Applications, 9(1), 19–31. DOI: 10.1080/13675560500322417.

[19] Estache, A., González, M. & Trujillo, L. (2002)10.1016/S0305-750X(01)00129-2. Effenciency gains from port reform and the Potential for Yardstick Competition: lesson from Mexico. World Development. 30 (4), 545-560. DOI: .

[20] Farrell, M. J. (1957), The measurement of productive efficiency. Journal of the royal statistical Society. 120 (3), 253-290.

[21] González, M. & Trujillo, L. (2008). Reforms and Infrastructure Efficiency in Spain’s Container Ports. Transportation Research Part A. 42, 243-257. DOI: 10.2307/2343100.

[22] Hanaa Abdelaty, H. E. (2016). Efficiency Assessment of Jazan Port Based on Data Envelopment Analysis”. Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy. 7 (3), 320-327. DOI:10.5901/mjss.2016.v7n3s1p320.

[23] Liu, Z. (1995). The comparative performance of public and private enterprises: The case of British ports. Journal of Transport Economics and Policy, 29(3), 263-274. DOI: 10.1111/j.1475-5890.1982.tb00572.x ·

[24] Martinez, B.E., Diaz, A.R. & Navarro, I.M. & Ravelo, M.T. (1999). A Study of the Efficiency of Spanish Port Authorities Using Data Envelopment Analisys. International Journal of Transport Economics. 26 (2), 237-253.

[25] Meeusen, W. & Van Den Broeck, J. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International Economic Review. 18(2), 435–444. DOI: 10.2307/252575.

[26] Munisamy, S. & Singh, G. (2011). Benchmarking the efficiency of Asian container ports. African Journal of Business Management. 5(4), 1397-1407. DOI :10.5897/AJBM10.1312.

[27] Park, B. I. (2005). An Efficiency Analysis for the Korea Container Terminals by the DEA/Simulation Approach. Korean Management Science Review. 22 (2), 77-97.

[28] Rajasekar, T & Deo, M (2013). Measuring the operational efficiency of selected Major Ports in India. MJOR, 2 (2), 29-4. DOI: 10.6088/ijes.2014040404531.

[29] Pjevcevi, D., Radonji.C., Hrle.Z., Coli. V. (2011). DEA window ´ analysis for measuring port efficiencies in Serbia. PROMET— Traffic, Transportation. 24(1), 63–72.

[30] Roll, Y. & Hayuth, Y. (1993). Port Performance Comparison Applying Data Envelopment Analysis (DEA). Maritime Policy and Management. 20 (2), 153-161. DOI :10.1080/03088839300000025.

[31] Sun, X., Yan, Y. & Liu, J. (2006). Econometric Analysis of Technical Efficiency of Global Container Operators. Proceedings of the 11th International Conference of Hong Kong Society for Transportation Studies: Sustainable Transportation, 667-676.

[32] Tongzon, J. L. (2001). Efficiency Measurement of Selected Australian and Other International Ports Using Data Envelopment Analysis. Transportation Research Part A. 35(2), 107-122. DOI: 10.1016/S0965-8564(99)00049-X

[33] Tongzon, J. & Heng, W. (2005). Port privatization, efficiency and competitiveness: Some empirical evidence from container ports (terminals). Transportation Research Part A, 39 (5), 405–424. DOI: 10.1016/j.tra.2005.02.001.

[34] Trujillo, L. & Tovar, B. (2007). The European Port Industry: An Analysis of its Economic Efficiency. Maritime Economics and Logistics. 9(2), 148-171. DOI: 10.1057/palgrave.mel.9100177 ·

[35] Valentine, V.C. & Gray, R. (2001). The Measurement of Port Efficiency Using Data Envelopment Analysisl. Conference: Conference: Proceedings of the 9th world conference on transport research. Volume: 22.

[36] Wang, T.F., Cullinane, K. & Song, D.K. (2005). Container Port Production and Economic Efficiency. 1st edition, Palgrave Macmillan, New York. 208. DOI : 10.1057/9780230505971.

[37] Zheng, X.Y. & Park, N.K. (2016). A study on the efficiency of terminal in corea and china. The asian journal of shipping and logistic. (32) 4, 213-220. http://dx.doi.org/10.1016/j.ajsl.2016.12.004.

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 109 109 32
PDF Downloads 137 137 22