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Using stochastic frontier and data envelopment analysis to measure port efficiency: application issues and implications


Nguyen, H-O and Nguyen, H-V and Chin, ATH, Using stochastic frontier and data envelopment analysis to measure port efficiency: application issues and implications, Proceedings of the International Association of Maritime Economists 2012 Conference, 5-8 September, 2012, Taipei, Taiwan, pp. 1-19. (2012) [Refereed Conference Paper]

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Both the stochastic frontier analysis (SFA) and data envelopment analysis (DEA) methods have been applied extensively in port efficiency measurement. However, the two methods are based on completely different approaches; one is parametric while the other is non-parametric. This difference makes their comparison technically un-meaningful. To overcome this issue, the current study applies the bootstrapped DEA method instead of the traditional, non-parametric one. The data set for the 43 largest sea ports in Vietnam was used. The analysis results indicate that, while the efficiency indexes obtained from the two methods provide useful and consistent measures of the Vietnamese portsí efficiency, they remain significantly different. Based on this, further analysis is conducted to gain further insights into issues concerning the practical application of the two methods.

Item Details

Item Type:Refereed Conference Paper
Keywords:sea ports, port efficiency, stochastic frontier analysis, data envelopment analysis, Vietnam
Research Division:Commerce, Management, Tourism and Services
Research Group:Transportation, logistics and supply chains
Research Field:Transportation, logistics and supply chains not elsewhere classified
Objective Division:Transport
Objective Group:Water transport
Objective Field:Coastal sea freight transport
UTAS Author:Nguyen, H-O (Associate Professor Oanh Nguyen)
ID Code:83319
Year Published:2012
Deposited By:NC Ports and Shipping
Deposited On:2013-03-08
Last Modified:2014-12-19
Downloads:4 View Download Statistics

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