• Title/Summary/Keyword: Malmquist Productivity Index Trade strategies

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An analysis of the operational efficiency of the major airports worldwide using DEA and Malmquist productivity indices (세계 주요 공항 운영 효율성 분석: DEA와 Malmquist 생산성 지수 분석을 중심으로)

  • Kim, Hong-Seop;Park, Jeong-Rim
    • Journal of Distribution Science
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    • v.11 no.8
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    • pp.5-14
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    • 2013
  • Purpose - We live in a world of constant change and competition. Many airports have specific competitiveness goals and strategies for achieving and maintaining them. The global economic recession, financial crises, and rising oil prices have resulted in an increasingly important role for facility investment and renewal and the implementation of appropriate policies in ensuring the competitive advantage for airports. It is thus important to analyze the factors that enhance efficiency and productivity for an airport. This study aims to determine the efficiency levels of 20 major airports in East Asia, Europe, and North America. Further, this study also suggests suitable policies and strategies for their development. Research design, data, and methodology - This paper employs the DEA-CCR, DEA-BCC, and DEA-Malmquist production index analysis models to determine airport efficiency. The study uses data on the efficiency and productivity of the world's leading airports between 2006 and 2010. The input variables include the airport size, the number of runways, the size of passenger terminals, and the size of cargo terminals. The output variables include the annual number of passengers and the annual cargo volume. The study uses basic data from the 2010 World Airport Traffic Report (ACI). The world's top 20 airports (as rated by the ACI report) are investigated. The study uses the expanded DEA Model and the Super Efficiency Model to identify the most effective airports among the top 20. The Malmquist productivity index analysis is used to measure airport effectiveness. Results - This study analyzes longitudinal and cross-sectional data on the world's top 20 airports covering 2006 to 2010. A CCR analysis shows that the most efficient airports in 2010 were Gatwick Airport (LGW), Zurich Airport (ZRH), Vienna Airport (VIE), Leonardo da Vinci Fiumicino Airport (FCO), Los Angeles International Airport (LAX), Seattle-Tacoma Airport (SEA), San Francisco Airport (SFO), HongKong Airport (HKG), Beijing Capital International Airport (PEK), and Shanghai Pudong Airport (PVG). We find that changes in airport productivity are affected more by technical factors than by airport efficiency. Conclusions - Based on the study results, we offer four airport development proposals. First, a benchmark airport needs to be identified. Second, inefficiency must be reduced and high-cost factors need to be managed. Third, airport operations should be enhanced through technical innovation. Finally, scientific demand forecasting and facility preparation must become the focus of attention. This paper has some limitations. Because the Malmquist productivity index is based on the hypothesis of the, the identified production change could be over- or under-estimated. Further, as DEA estimates the relative efficiency. It also cannot generalize to include all airport conditions because the variables are limited. To measure airport productivity more accurately, other input variables and environmental variables such as financial and policy factors should be included.

A Study on Port Efficiency in the Russian Arctic as a Key Factor for Trade Growth in the Northern Sea Route (북극항로 무역 성장을 위한 러시아 북극의 항만 효율화에 관한 연구)

  • Ilana Zakharova;Hyang-Sook Lee
    • Korea Trade Review
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    • v.48 no.4
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    • pp.121-148
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    • 2023
  • The rapid melting of Arctic sea ice has increased interest in the Northern Sea Route (NSR) as a viable alternative trade route between Europe and Asia. While extensive research has examined its competitiveness in terms of technical feasibility, safety, profitability, and environmental impact, the topic of the NSR ports remains relatively underrepresented in the literature. Hence, this study aims to contribute to the existing research by assessing the efficiency of 17 NSR ports to gain insights into their operations and identify areas for improvement using models of Data Envelopment Analysis(DEA). The obtained results show that efficient ports mainly belong to the western NSR region, with ports like Murmansk and Varandei consistently demonstrating high efficiency and constant returns to scale. Several ports, such as Onega, Arkhangelsk, Naryan-Mar, and Khatanga, showed inefficiencies in the utilization of berths and quay lengths. The findings not only contribute to academic knowledge but also offer practical implications for NSR port authorities, assisting them in making well-informed decisions regarding infrastructure development plans.

Evaluating the Multi-Period Management Efficiency of Domestic Online-Shopping Companies (DEA와 Malmquist 생산성지수를 이용한 우리나라 온라인쇼핑업체의 다기간 경영 효율성 분석)

  • Ma, Jin-Hee;Ja, Yoon-Ho;Ahn, Young-Hyo
    • Journal of Distribution Science
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    • v.13 no.4
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    • pp.45-53
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    • 2015
  • Purpose - Online shopping enables consumers to conveniently purchase products irrespective of the time and place. As a result, several online shopping companies have emerged to cater to this growing market and, therefore, the competition among them has become increasingly intense. This paper evaluates the comparative efficiency of online shopping companies for a multi-year period (2009-2013), in order to help online shopping managers identify major drivers for enhancing management efficiency and the subsequent competitiveness. Research design, data, and methodology - The researchers collected the data from 2009 to 2013 from the distribution yearbook. This paper analyzes the marketability (sales figures), profitability (business profits), and management conditions (net profits) of domestic online shopping enterprises by incorporating information on human resources (number of employees) and material resources (total assets and capital). Therefore, the number of employees, total assets, and capital are selected as input variables, and sales figures, business profits, and net profits as the output variables. In this study, Data Envelopment Analysis (DEA) was used to measure the comparative efficiency of domestic online shopping companies. In addition, the Malmquist Productivity Index was used to evaluate the trend of change of Decision Making Units' (DMUs') efficiency for a multi-year period. Results - First, as of 2013, Interpark (2.415) was found to be the most efficient online shopping enterprise, followed by Aladdin Communications (2.117), Hyundai Home shopping (1.867), Home&Shopping (1.176), NS Home shopping (1.170), Commerce Planet (1.126), CJ O Shopping (1.105), Ebay Korea (1.088), and GS Home Shopping (1.051). Second, this study recognizes how the management efficiency has changed for the period 2009-2013. Third, the lesser the capital and employees, the more are the net profits, and the better is the management efficiency of domestic online shopping companies. Lastly, the productivity of such companies is influenced by endogenous factors rather than exogenous factors such as shifts in business environment and technological advances. Conclusions - DHC Korea influenced various distribution channels to reach customers through the Internet. Consequently, this helped in increasing the awareness about its products, in addition to an increase in sales. These achievements can be attributed to the characteristics of online shopping companies. Although it is easy for these companies to suggest goods for one-off purchases, they however have difficulties in retaining customers. Overcoming this challenge can be one of the ways to benchmark a successful case of an efficient company. For example, an online shopping company can attract customers by developing a corresponding mobile application as a convenient way to shop online. Additionally, they can satisfy customers by quick delivery of purchased products, which is possible by building an effective logistics network. Our study indicates that the productivity of an online shopping company was influenced by endogenous factors driven by improvements in managerial practices rather than exogenous factors. Accordingly, online shopping companies should adopt strategies to improve their operational efficiency rather than sales volume-oriented management.