Abstract
The main aim of this paper is to perform efficiency and productivity analysis of Universal Service Obligation (USO) based on the Malmquist Productivity Indices (MPI) analysis. The study focuses on 29 Designated Operators (DOs) and two isolated periods, the years 2003 and 2017. There is a clear trend of workforce reduction (12%). Considering the postal services, the data confirm a general trend that the letter-post is in decline (30%) and the parcels are on the rise (52%). Considering the financial results, both costs and revenues are increased; however, there is a higher increase of revenue (33.13%) compared to the cost (32.61%). Further, the results of implemented methodology are twofold. Firstly, a progress is determined at the average level of all observed DOs according to the efficiency and productivity indicators. Among other, the results indicate the increase of productivity for both input MPI (3.5%) and output MPI (8%). However, there are significant variations of efficiency and productivity at the individual level. Secondly, the aim of research was also to examine the sources of productivity changes by considering postal market liberalization, ownership, marketing services and e-commerce. Our findings show that the last three specified variables contribute to the explanation of productivity change.
Highlights
Postal services are considered as one of the drivers of the development of economy and society
In this paper we illustrated the analysis of efficiency and productivity of designated operators by using Data envelopment analysis (DEA) method and Malmquist indices
The results of efficiency analysis of 29 Designated Operators (DOs) from Europe suggest that there are at least 6 DOs that are excellent in operation for both considered periods and as such represent good examples for other DOs
Summary
Postal services are considered as one of the drivers of the development of economy and society. The size of the postal market in the European Union (EU) is around 90 billion euros in 2016, compared to 84 billion euros in 2013 This equals to 0.52% and 0.55% of the total. Besides contributing to gross domestic product and employment as other businesses, the postal operators make the functioning of other economic entities easier. They speed up and facilitate the business activity by their services, such as transfer of goods between spatially separated production and consumption points, transfer of business documentation, warehousing, inventory management, communication services, various types of e-services, marketing services; they offer a possibility of connecting the national and world markets, contribute to developing of new forms of services like e-commerce, etc. Each state designates at least one postal operator to serve as a designated operator (DO)
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