Efficiency comparison and efficiency development of the metallurgical industry in the EU: Parametric and non-parametric approaches

Abstract

This article deals with the development of technical (production) efficiency in the metallurgical industry in EU countries with an emphasis on the situation in the Czech Republic. The efficiency of individual countries was estimated for the period from 1995 to 2015. The parametric stochastic frontier analysis method with different settings was chosen to estimate efficiency and the results were verified using a competitive non-parametric data envelopment analysis method. It was found that during the period under review, there was an average increase in efficiency in the metallurgical industry. The largest increase in efficiency (confirmed by all types of models) was observed in the Czech Republic. A visible positive efficiency shift was also recorded in Spain and Greece. Surprisingly, there has been a decline in efficiency in Sweden and Italy.