The Most Efficient Czech SME Sectors: An Application of Robust Data Envelopment Analysis
| Author(s): | Jan Průša M.Phil. (Cantab), Ph.D., |
|---|---|
| Type: | Articles in journals with impact factor |
| Year: | 2012 |
| Number: | 1 |
| ISSN / ISBN: | 0015-1920 |
| Published in: | Czech Journal of Economics and Finance |
| Publishing place: | Prague |
| Keywords: | production; efficiency measurement; data envelopment analysis; small and medium-sized enterprises |
| JEL codes: | D24, L60, L70 |
| Suggested Citation: | |
| Grants: | Efficiency and Employment in Small and Medium-size Enterprises: Comparison with the Corporate Sector (2008-2010) GACR P402/11/0948 Developing Analytical Framework for Energy Security: Time-Series Econometrics, Game Theory, Meta-Analysis and Theory of Regulation GAČR č. P402/12/0982: Trade Flows in Times of Economic Boom and Slump: Modifying the Gravity Model for Country, Time and Product-Specific Decision-Making |
| Abstract: | This paper analyzes the efficiency of Czech small and medium-sized enterprises (SMEs). The main focus is on structural analysis of Czech SMEs in manufacturing based on their efficiency. We use sectoral data from 2002 to 2005 for 30 manufacturing industries, each divided into five subgroups according to the number of employees. We employ standard and advanced robust data envelopment analysis (DEA) to obtain cross-sectional rankings of individual industries. The results reveal substantial variance in the efficiency scores, variance which is only partly removed by the robust DEA specification. We found that the majority of sectors operate below full efficiency, with only a few industries belonging to the top performers. The average efficiency lies between 50 and 70 percent of that of the best sectors. We conclude that only a minor proportion of Czech SMEs are able to generate high value added per unit of labor-capital. |
