Measuring Technical Efficiency and Economy on Scale in Finnish Food Processing Industry

Authors

  • Svitlana Holyk Researcher at Department of Economics and Management, University of Helsinki, Fi-00014, Finland

Keywords:

Data Envelop Analysis (DEA), Variable Return to Scale, Constant Return to Scale, Scale Efficiency, Food processing industry.

Abstract

The purpose of this research is to identify the subsectors in the Finnish food processing industry with the lowest level of technical and scale efficiency. A key objective is understanding major reasons of efficiency losses in this industry during 1999-2012. The Data Envelop Analysis approach is applied for measuring the technical and scale efficiency. The VRT, CRT, IRT, DRT models are used in this research for measuring technical efficiency levels and optimal scale. The relationship between output and inputs cost of the nine subsectors is measured with correlation coefficient. The contribution includes a scientific assessment of the productivity and efficiency of food processing sectors, as well as its contribution to the Food industry and the overall Finnish economy. The results will provide recommendations for improving the subsectors efficiency and for defining government policies. Some of the results are valuable for managers and processing company owners.

Author Biography

Svitlana Holyk, Researcher at Department of Economics and Management, University of Helsinki, Fi-00014, Finland

References

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Published

2016-06-14

How to Cite

Holyk, S. (2016). Measuring Technical Efficiency and Economy on Scale in Finnish Food Processing Industry. International Journal of Sciences: Basic and Applied Research (IJSBAR), 27(3), 226–238. Retrieved from https://www.gssrr.org/index.php/JournalOfBasicAndApplied/article/view/5806

Issue

Vol. 27 No. 3 (2016)

Section

Articles

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