Efficiency Analysis of Manufacturing Firms Using Data Envelopment Analysis Technique

10.6339/JDS.201801_16(1).0004

Tagdira Naznin Smriti；Md Hasinur Rahaman Khan

Efficiency analysis ； Variable returns to scale ； Competitive market ； Enterprise survey

Journal of Data Science

16卷1期（2018 / 01 / 01）

69 - 77

英文

Efficiency analysis is very useful and important to measure the performance of the firms in competitive market of rapidly developing country like Bangladesh. The more efficient firms, and the decision making units (DMUs) are usually referred as benchmarking units for the development. In this study, efficiency scores are obtained using the non-parametric Data Envelopment Analysis (DEA) technique for 1007 manufacturing firms in Bangladesh from the enterprise survey data. The DEA is used to calculate weights for inputs and outputs by assigning the maximum efficiency score for a DMU under evaluation. Total 29 firms are found efficient under variable returns to scale assumption. The significant determinants behind the inefficiency found in this analysis include mainly the firm size, manager's experience in respective sector, annual losses due to power outage, number of production workers.