Title: Role of location in railway sector efficiency

Authors: Olli-Pekka Hilmola

Addresses: Kouvola Research Unit, Lappeenranta University of Technology, Prikaatintie 9, FIN-45100 Kouvola, Finland

Abstract: For this research work we have selected one of the most traditional sectors, railway transports and its efficiency, to be explained using country’s location. Our results show that in Data Envelopment Analysis (DEA) models in some cases efficiency differences are explained by 20–40% with location. Driver is typically longitude. Explanation power is best in efficiency models, where financial outputs are used. However, found relationship is diminishing in several situations, when USA is removed from observation points – in other words the whole found relationship is US biased, particularly in freight sector, and with older data.

Keywords: railways; rail passengers; freight transport; Malmquist DEA; data envelopment analysis; geographical location; efficiency differences; longitude; efficiency models; financial outputs; USA; United States; observation points; found relationships; bias; older data; latitude; logistics systems; logistics management.

DOI: 10.1504/IJLSM.2011.043106

International Journal of Logistics Systems and Management, 2011 Vol.10 No.4, pp.478 - 494

Published online: 14 Oct 2011 *

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