The Studies on Efficiency Analysis in Applied Economics Using a Three-Stage Data Envelopment Analysis

Abstract

This review work focuses on the utilization of the three-stage DEA model in applied economic research. The review studies were to unearth the tendency of utilization of non-parametric methods, i.e., the three-stage DEA model, in West Africa and some parts of Asia. However, the study revealed that there exists a large body of scholarly works that employ the CCR-Conventional DEA model in their works. Methodologically, extensive google search was the technique used for the literature, and during the process of gathering the literature, studies from Africa were highly minimal, but studies from Asia on a three-stage DEA model were dominant. A broad literature survey for the review revealed that studies on efficiency analysis in applied economic research using frontier methodologies such as a three-stage DEA model were moderately used in empirical studies, particularly in Asia like China. However, the usage of a three-stage data envelopment analysis has a large technical gap. Finally, there is a huge body of research which used traditional DEA that has abandoned the three-stage DEA procedures that are limited in use in the African domains. This review work recommends and advocates intensive usage of a three-stage DEA model in efficiency analysis due to its robustness.