Measuring the Technical Efficiency of Railways in Developing Countries: A Two Stage- Bootstrap Data Envelopment Analysis

AOUAD Hadjar Soumai; BENZAI Yassine

doi:10.34118/djei.v12i1.1119

AOUAD Hadjar Soumai University of Saida
BENZAI Yassine University of Saida

DOI: https://doi.org/10.34118/djei.v12i1.1119

Abstract

This paper aims at measuring the technical efficiency of selected railways operating in developing countries over the period 2013-2018. We apply the Bootstrap Data Envelopment Analysis DEA to an Input-Output oriented model under Variable Return on Scale. In general, the findings suggest that the bootstrapping technique provides more consistent and realistic efficiency estimates, in contrast with the conventional DEA. In fact, the results show a technical efficiency score of 56,1 % for the sample which indicates that the observed railways could potentially reduce the usage of its inputs by 43,9 % on average and reach high levels of production at the same time. We also notice the existence of significant gaps in technical efficiency across the observed railways. Finally, the results show a performance decline in most of the railways during the period of analysis with shifts representing occasional back and forth developments for other railways in the middle periods.

Downloads

Download data is not yet available.

References

Aggelopoulos, E., & Georgopoulos, A. (2017). Bank branch efficiency under environmental change: a bootstrap DEA on monthly Profit and Loss accounting statements of Greek retail branches. European Journal of Operational Research, 1170-1188.

Arne , B., Heiner , B., & Martin , S. (2013). Railway Efficiency: An Overview and a Look at Opportunities for Improvement. Hamburg: Civity Management Consultants.

Banker, R., Charnes, A., & Cooper, W. (1984). Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis. Mnagement Science Vol(30) .9, 1078-1092.

Besstremyannaya, G. (2013). The Impact oF Japanese Hospital Financing Reform on on Hospital Efficiency : A Difference-in-Difference Approach. The Japanese Economic Review Vol. 64, No. 3, 337-362.

Cantos , P., & Maudos, J. (2001). Regulation and efficiency : the case of European railways. Transportation Research Part A, 35 (5), 459-472.

Charnes, A., Cooper, W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research ,2, 429-444.

Coelli, T., & Perelman, S. (2000). Technical efficiency of European railways: a distance function approach. Applied Economics, No. 2000-32, 1967-1976.

Coelli, T., Rao, D., O'Donnell, C., & Battese, G. (2005). An Introduction To Efficiency And Productivity Analysis. Second Edition. New York: Springer Science-i-Business Media, Inc.

De Jorge Moreno, J., & Garcia-Cebrian, L. I. (1999). Measuring of Productive Efficiency in European Railways. European Business Review (99)-5, 332-344.

De jorge, J., & Suarez, C. (2003). Has the efficiency of European railway companies been improved? European Business Review, Vol. 15, No.4, 213-220.

De Jorge-Moreno, J., & Isabel Garcia-Cebrian, L. (1999). Measuring of production efficiency in the European railways. European Business Review (99) 5 , 332–344.

Doomernik, J. E. (2015). Performance and efficiency of High-speed Rail systems. Transportation Research Procedia 8 , 136-144.

Hilmola, O.-P. (2007). European railway freight transportation and adaptation to demand decline. International Journal of Productivity and Performance Management, Vol. 56, No. 3, 205-225.

Hilmola, O.-P. (2008). Railway efficiency analysis from larger Europe during the period 1994–2003. Int. J. Operational Research, Vol. 3, No. 3, 255-280.

Kanmani, G., & Prakash, V. (2019). Bootstrapping Dea Efficiency Estimates of Indian Railways System. International Journal of Recent Technology and Engineering, 106-110.

Kapetanović, M. V., Milenković, M. S., Bojović, N. J., & Avramović, Z. Ž. (2017). Evaluation of European railway companies efficiency: Application of a twostage analysis. Tehnika, Vol. 72, No. 3, 403-410.

Kutlar, A., Kabasakal, A., & Sarikaya, M. (2012). Determination of the efficiency of the world railway companies by method of DEA and comparison of their efficiency by Tobit analysis. Quality & Quantity, Vol. 47, 3575-3602.

Kutlar, A., Kabasakal, A., & Sarikaya, M. (2013). Determination of the efficiency of the world railway companies by method of DEA and comparison of their efficiency by Tobit analysis. Quality & Quantity, Vol. 47, 3575-3602.

Li, W., & Hilmola, O.-P. (2019). Belt and road initiative and railway sector efficiency—application of networked benchmarking analysis. Sustainability, 11, 2070. .

Merkert, R., Smith, A. S., & Nash, C. A. (2009). Benchmarking of train operating firms – a transaction cost efficiency analysis. Transportation Planning and Technology, Vol. 33, No. 1, 35-53.

Merkert, R., Smith, A., & Nash, C. (2010). Benchmarking of train operating firms - a transaction cost efficiency analysis. Transportation Planning and Technology Vol. 33, No. 1, 35-53.

Oum, T., & Yu, C. (1994). Economic efficiency of railways and implications for public policy: a comparative study of the OECD countries’ railways. Journal of Transport Economics and Policy, 28 (2), 121-138.

Simar, L., & Wilson, P. (1998). Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier. Management Science, Vol. 44, No. 1, 49-61.

Simar, L., & Wilson, P. (2002). Non-Parametric Tests of Returns to Scale. European Journal of Operational Research,Vol. 139, 115-132.

UIC. (2013-2018). International Railway Statistics. Paris: Statistics of Individual Railways.

Vicente , C.-S., Rafael , B., & Bolos, V. (2020). deaR : Conventional and Fuzzy Data Envelopment Analysis. A software package in R.

Wetzel, H. (2008). European railway deregulation: the influence of regulatory and environmental conditions on efficiency. Luneburg: University of Luneburg, Institute of Economics, No. 86.

Yu, M.-M. (2008). Assessing the technical efficiency, service effectiveness, and technical effectiveness of the world’s railways through NDEA analysis. Transportation Research Part A, 1283–1294.

Appendix