Port allocative efficiency and port devolution: a study for the Spanish port authorities (1992-2016)

Abstract

ABSTRACT This paper analyses the effect of port devolution on the Spanish port authorities’ allocative efficiency across periods with different regulations during the port devolution process in Spain. To do this, we first obtain a measure of allocative efficiency from a distance system of equations using two different approaches: the error components approach and the parametric approach. Then, we evaluate whether port devolution has had effects on allocative efficiency by applying a quantile regression approach, taking into account control variables related to port characteristics. Our results suggest that allocative inefficiencies occur in the Spanish port system. We also demonstrate that port devolution reforms, both internal and external port characteristics have had a significant effect on the port authorities’ allocative inefficiency.