Title: Value chain and technical efficiency: an empirical analysis in the Eastern European industrial firms

Authors: Leopoldo Laborda Castillo; Daniel Sotelsek Salem

Addresses: The World Bank and Institute of Latin American Studies, University of Alcalá, Colegio de Trinitarios, c/Trinidad n 1, Alcalá de Henares, 28801, Madrid, Spain. ' Economics Department, University of Alcalá, Plaza de la Victoria s/n, Alcalá de Henares, 28804, Madrid, Spain

Abstract: This study examines technical efficiency and its determinants in companies from East Europe who recently joined the European Union (EU) using survey data at the sector level. In order to get acquainted with the conditioning factors of the obtained technical efficiency, we resort to the classic concept of value chain, as described by M.E. Porter (1985). We specify different models regarding the strategic behaviour of the industrial sector firms, with the purpose of learning the impact on the technical efficiency. A data envelopment analysis (DEA) approach is applied to estimate technical efficiency level for individual sectors. One of the most important results that arise from our analysis is the existence of highly heterogeneous efficiency determinants among productive sectors. In this context, while policy priorities may differ across countries and sectors, the identified micro-policies represent practical approaches to common policy challenges in companies from EU member countries from East Europe.

Keywords: technical efficiency; value chain; DEA; data envelopment analysis; bootstrapping; Eastern Europe; EU member countries; European Union.

DOI: 10.1504/IJVCM.2012.050862

International Journal of Value Chain Management, 2012 Vol.6 No.3, pp.187 - 215

Published online: 16 Aug 2014 *

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