Ranking the Iranian provinces by technical efficiency of industrial sector by applying DEA method

اقتصاد پولی مالی

Article 7, Volume 16, Issue 29, January 2011   

Document Type: پژوهشی

DOI: 10.22067/pm.v16i29.27199

Authors

Hamid Amadeh^* ; Ali Emami Meibodi; Ali Azadinezhad

Abstract

Economic growth is the most important purpose of developing countries. Each country can improve social welfare and access to international markets by increasing production potential. Production can increase by two ways: the first one, using more inputs that raising production cost and the second one, improving efficiency that can produce more output with certain inputs or the same output with less cost. The Iranian industrial sector has big share of production, employment and investment. Therefore identification technical efficiency is essential for programming economy growth. In this paper, the Data Envelopment Analysis was used to measure the technical efficiency of Iranian provinces through 1375-1383. Then, the efficient units have been ranked with Anderson-Peterson method. Results indicate Boohsher, Kerman, Khuzestan and Hormozgan provinces have the greatest value of technical efficiencies. Then Tehran, Esfahan, Markazi and Azerbaijan Sharghi as industrial provinces were ranked after these provinces. Total average of technical efficiency in industrial sector of the Iranian provinces is 62/7 percent.

Keywords

Technical Efficiency; Data Envelopment Analysis; Anderson - Peterson method