<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Background:</bold> 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.<bold>Objectives:</bold> 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.<bold>Methods/Approach:</bold> 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.<bold>Results:</bold> The obtained results indicate that a significant improvement of meta-technology ratio holds within the European context.<bold>Conclusions:</bold> 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.</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.

Application of the Nonparametric DEA Meta-frontier Approach with Undesirable Outputs in the Case of EU Regions

VŠB-Technical University of Ostrava, Faculty of Economics,

Business Systems Research Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Background: The paper focusses on the efficiency evaluation of the EU-28 NUTS 2 regions production process according to the concept of the Regional...

Application of the Nonparametric DEA Meta-frontier Approach with Undesirable Outputs in the Case of EU Regions

Published Online: Oct 17, 2016

Page range: 65 - 77

Received: Feb 07, 2016

Accepted: Aug 28, 2016

DOI: https://doi.org/10.1515/bsrj-2016-0013

Keywords
competitiveness, directional distance function, efficiency, EU-28 regions, group-frontier, Regional Competitiveness Index 2013, meta-frontier, meta-technology ratio, technology gap inefficiency

© 2016 Jana Hančlová et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Application of the Nonparametric DEA Meta-frontier Approach with Undesirable Outputs in the Case of EU Regions

Published Online: Oct 17, 2016

Page range: 65 - 77

Received: Feb 07, 2016

Accepted: Aug 28, 2016

DOI: https://doi.org/10.1515/bsrj-2016-0013

Keywordscompetitiveness, directional distance function, efficiency, EU-28 regions, group-frontier, Regional Competitiveness Index 2013, meta-frontier, meta-technology ratio, technology gap inefficiency

© 2016 Jana Hančlová et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
competitiveness, directional distance function, efficiency, EU-28 regions, group-frontier, Regional Competitiveness Index 2013, meta-frontier, meta-technology ratio, technology gap inefficiency