A Cross-Country European Efficiency Measurement of Maritime Transport: A Data Envelopment Analysis Approach

Abstract

Maritime transport, which includes shipping and port operations, is the fundamental basis of international trade and globalization. In transportation management, efficiency is critical for verifying performance and proposing the best countermeasure to meet predetermined goals. Various efforts in this field have been made to solve this problem satisfactorily. However, the significant proportion of conventional approaches are based on long-term observations and professional expertise, with only a few exceptions based on practice-based historical data. Data Envelopment Analysis (DEA) is a non-parametric technique for analyzing various output and input variables parallelly. The efficiency of maritime transport in European countries is explored using a two-stage DEA approach based on Malmquist and Epsilon-Based Measure (EBM). First, the Malmquist model analyses countries’ total productivity growth rates and their breakdown into technical efficiency (catch-up) and technology change (frontier-shift). Second, the EBM model is used to determine the efficiency and inefficiency of the maritime transportation systems in each European country. Apart from identifying the best-performing countries in specific areas over the study period (2016–2019), the results highlight that the gap in applying the EBM method to maritime transport has been successfully closed and that the emerging paradigm, when combined with the Malmquist model, can be a sustainable and appropriate evaluation model for other research areas.