Malmquist Total Factor Productivity Index Research Articles

Efficiency Analysis of Life Insurance Companies in Indonesia and Malaysia

This study focuses on measuring the performance of life insurance companies in Indonesia and Malaysia. Input oriented Data Envelopment Analysis (DEA) uses panel data to extract the efficiency score of 5 life insurance companies from Indonesia and 5 life insurance companies from Malaysia for the year of 2015-2019. DEA-based Malmquist Total Factor Productivity (TFP) Index used to measure the efficiency change along the study period. This study utilizes asset and operating expenses as input variables, as for output variables, this study utilizes premium and investment income. Based on an efficiency score computed by DEA, most of the life insurance companies in both countries perform efficiently during the study period. However, life insurance companies in Indonesia still perform more efficiently than Malaysian life insurance companies. The results of the Malmquist TFP Index for life insurance companies in both countries show that there is 2.5% improvement in technical efficiency change, 1.5% deterioration in technology efficiency change, 0.6% improvement in pure efficiency change, 1.9% improvement on scale efficiency change, and 0.9% increase in TFP change. It shows that the main reason for TFP increased is due to improvement of technical efficiency change.

An innovative approach to evaluating sustainable development performance: The case of Turkey

AbstractThe assessment of sustainable development necessitates precise productivity measurement. Existing literature reveals a wide array of methods employed for this purpose. However, these approaches give rise to concerns regarding the accurate assessment of both efficiency (EC) and technical (TC) changes. Additionally, the data used for productivity measurement are often subject to uncertainty. In response to these shortcomings in the existing literature, this study introduces the Environmental Fuzzy Malmquist Total Factor Productivity (EFM) index for productivity measurement. Within this framework, the study aims to assess Turkey's environmental sensitivity and sustainable development performance using the proposed EFM index. To achieve this goal, the study first constructs the Environmental Sensitivity Index (ESI), considering undesirable environmental pollution variables related to air, water, and soil pollution. Subsequently, the ESI is integrated with the Fuzzy Malmquist Total Factor Productivity Index (FM) to develop the new EFM index. The proposed integrated EFM index exhibits an enhanced ability to evaluate both EC and TC while addressing the challenges stemming from uncertainty. The proposed integrated EFM index indicates that the Marmara and Aegean regions of Turkey demonstrate the highest level of sustainable development performance. Finally, the study offers recommendations and policies to assist developing countries in enhancing their sustainable development performance.

Technical efficiency in banks: a review of methods, recent innovations and future research agenda

AbstractTechnical efficiency in banking is a critical aspect of the financial industry and has been widely studied using various measurement techniques. This systematic literature review offers a comprehensive examination of 305 studies on the application of technical efficiency measurement techniques in both Islamic and conventional banking sectors from 1989 to 2019. Our comprehensive analysis not only provides a broad view of the efficiency measurement literature but also outlines a future research agenda. Despite the extensive research in this field, several issues remain unresolved, including input–output selection, a comparison of efficiency between Islamic and conventional banks, limited cross-country studies, and a lack of exploration into the impact of regulation and Shariah principles. To address these gaps, this review highlights the most commonly used methods, variables, and findings and provides three key recommendations for future research. Three key themes emerge from our examination. First, there is a need to better understand and the application of new frontier techniques other than the traditional methods, which currently dominate the existing literature. Second, the intermediation approach is the most frequently used in variable selection, thus more studies with comparative findings with applications of production and value-added approaches are suggested. Third, the most frequently used input variables are ‘labor’, ‘deposits’ and ‘capital’, whilst ‘loans’ and ‘other earning assets’ are the most popular output variables. We recommend three vital directions for future research: (i) non-interest expenses to be included amongst the inputs, while non-interest income should be added to the list of outputs, especially when estimating efficiency scores of Islamic banks. (ii) The impact of environmental variables such as, inter alia, Shariah principles, country-specific factors, and management quality is suggested to be considered simultaneously in models measuring and comparing the efficiency of Islamic and conventional banks. (iii) The selection of performance metrics employed should be expanded to include both the standard efficiency scores and the Malmquist Total Factor Productivity Index (TFP). The paper concludes with research needs and suggests directions for future research.

Efficiency Analysis with Data Envelopment Analysis and Malmquist Total Factor Productivity Index: An Implementation in Group a Hospitals

Sağlık hizmet sunumunda kritik role sahip kurumlar olan hastanelerin üretim süreçlerindeki etkinliklerinin sağlanması bir gerekliliktir. Bu araştırma ile Türkiye’de kullanılan hastane sınıflandırma sistemine göre A-1 ve A-2 grubu hastanelerin 2018-2020 yıllarına ait verilerini kullanarak bulundukları illerin sağlık alanındaki etkinliklerinin ölçülmesi ve etkinliklerinin yıllar içerisindeki değişimlerinin ortaya çıkarılması amaçlanmıştır. Bu amaçla, araştırmada non-parametrik bir yöntem olan Veri Zarflama Analizi (VZA) ve Malmquist Toplam Faktör Verimlilik İndeksi (MTFVİ) yöntemleri kullanılmıştır. A-1 grubundaki illerin ölçeğe göre sabit getiri varsayımı altında yapılan VZA’ne göre (CCR modeli) üç yıl için sırasıyla %53,1; %53,1; %56,2’si etkindir. Ölçeğe göre değişken getiri varsayımı altında (BCC Modeli) yapılan analize göre ise etkin olan illerin oranı %65,6; %68,7; %75’tir. Bu iki analiz sonucunda etkin olmayan iller için örnek almaları gereken iller belirlenmiş ve etkin sınırda üretim için girdi değişkenlerinde yapılması gereken değişiklikler ile ilgili önerilerde bulunulmuştur. MTFVİ sonuçlarına göre, 2018-2019 periyodunda 24 ilin; 2019-2020 periyodunda 8 ilin toplam faktör verimliliklerinde iyileşme olduğu görülmüştür. A-2 grubunda ise CCR modeline göre illerin %45,4, %36,3 ve %27,2’si; BCC modeline göre %66,6, %63,6 ve % 45,4’ü etkindir. MTFVİ sonuçlarına bakıldığında ise, 2018-2019 periyodunda 23; 2019-2020 periyodunda ise 17 ilin toplam faktör verimliliklerinde iyileşme olmuştur. Her iki periyotta da bu iyileşmelerin kaynağının neredeyse tüm illerde sadece teknolojik ilerlemeler olduğu sonucuna ulaşılmıştır.
 Anahtar Kelimeler: Etkinlik Analizi, Veri Zarflama Analizi, Malmquist Toplam Faktör Verimlilik İndeksi
 JEL Sınıflandırması: D24, I10, G20

Efficiency measurement of real estate investment trusts traded in BIST with data envelopment analysis and Malmquist total factor productivity index

Purpose- The aim of the study is to measure the efficiency of real estate investment trusts traded on BIST with data envelopment analysis and the Malmquist total factor productivity index. Efficiency and productivity were measured using the Malmquist total productivity analysis and the Data Envelopment Analysis approach, both of whose application fields have grown recently. Methodology- The Malmquist total factor productivity index is used to analyze changes in total factor productivity of 20 real estate investment trusts operating in 2019–2020–2021, as well as the reasons for these changes, on the axis of variables such as current ratio, leverage ratio, long-term debt-to-asset ratio, short-term debt-to-asset ratio, equity-to-asset ratio, return on assets, net profit margin, and gross profit margin. Findings- The results of the analysis show that 8 companies that are relatively efficient according to their CCR technical efficiency values have been identified; these are ALGYO, AVGYO, HLGYO, MRGYO, MSGYO, PAGYO, RYGYO, and SNGYO. It has been observed that these companies have been effective in an output-oriented way over the past three years. Conclusion- The firms that are below the efficiency limit need to take a few things into account, according to the results. They need to alter a few input variables to reach a higher level of efficiency. It is anticipated that all these findings will support the decision-making of the companies and the investors who are considering investing in these companies. Keywords: Real estate investment trusts, data envelopment analysis, Malmquist total factor productivity index, efficiency measurement. JEL Codes: C67, L25, G29

Do ecological protection approaches affect total factor productivity change of cropland production in Sweden?

Ecological protection approaches are important in achieving sustainable productivity growth in agriculture. Based on an unbalanced panel dataset for 2010–2016, we used stochastic frontier analysis-based Malmquist total factor productivity index to estimate total factor productivity change of Swedish crop production and its components (efficiency change, technical change, scale change). We then examined the effect of ecological protection approaches on total factor productivity change. The empirical results demonstrated that ecological protection approaches such as organic farming, mixed cropping or integrated farming could hamper total factor productivity growth. The results also indicated that average total factor productivity change in the study period was positive and average technical efficiency of the Swedish crop production was 71%. Among the components of total factor productivity change, average scale change was positive. Average technical efficiency change and average technical change were both negative. If technical efficiency and technological progress can be improved, that would increase the positive change in total factor productivity. This suggests that policies on compensation or insurance against productivity loss are required to encourage mainstreaming of ecological protection approaches among farmers.

Performance Assessment of Malaysian Fossil Fuel Power Plants: A Data Envelopment Analysis (DEA) Approach

This paper investigated the performance of Malaysian power plants from the year 2015 to 2017 using Malmquist Total Factor Productivity (TFP) index, which is based on Data Envelopment Analysis (DEA). This approach offers substantial advantages as compared to other existing methods as it can measure productivity changes over time for a variety of inputs and outputs. Moreover, it comprises two primary components: the technical efficiency change and the technological change indexes that provide clearer insight into the factors that are responsible for shifts in total factor productivity. This study uses a single input, installed generation capacity (MW), and two outputs, average thermal efficiency (%) and average equivalent availability factor (%). These output-input data included ten main power plants: TNB Natural Gas, SESB Natural Gas, SESB Diesel, SEB Natural Gas, SEB Coal, SEB Diesel, IPP Semenanjung Natural Gas, IPP Semenanjung Coal, IPP Sabah Natural Gas, and IPP Sabah Diesel. The results have two significant implications for fossil fuel power plants in Malaysia. First, technological change was the primary factor in boosting the TFP performance of the fossil fuel power plants in Malaysia. Meanwhile, the decline in TFP performance in Malaysian fossil fuel power plants may be attributed, in part, to a lack of innovation in technical components as the results found that the average technical efficiency changes in 2015 – 2016 were at 146% and then dropped significantly to 2% in 2016 – 2017. Second, the average scale efficiency changes rose dramatically from -53% to 3% providing a significant contribution to the improvement of technical efficiency changes. The fossil fuel power plants become efficient as the power plants’ size increases. This indicates that the size of a power plant positively impacts the performance of the TFP.

Renewable Energy and Economic Efficiency in the Framework of Sustainable Development: Malmquist Index and Tobit Model

Today, energy is as important as labour, capital and technology for the growth of countries. As countries grow economically, they try to achieve the same or more amounts of output with fewer inputs. In other words, countries target efficiency based growth. As the economic growth of countries increases, their energy requirements also increase. Regarding countries that are not rich in domestic resources, this increase, imposes significant costs. On the other hand, the finite energy supply in countries rich in domestic resources is an important problem. That is why the phenomenon of renewable energy has become a trend all over the world. In addition to reducing import dependence on energy, new policies are required to reduce the effects of climate changes and to protect natural resources. That is why; renewable energy and economic efficiency are an attractive research area. In the study, efficiency scores were obtained by calculating the Malmquist total factor productivity index in the period 1992–2018 for 10 countries among the N11 countries. Then, the efficiency values obtained by using the two stage estimation method were used as the dependent variables. The test results based on Tobit regression indicated that the increase in the supply of renewable energy positively increases economic efficiency. It can be said that the supply of renewable energy will lead to economic efficiency in the future.

Determining the Financial Performances of ISE Tourism Companies in the Period of 2009-2020 by Data Envelope Analysis

The tourism sector makes significant contributions to national and regional development. On the other hand, emerging political instabilities and any crisis have a significant impact on the development of the sector. In this study, it is aimed to determine the financial performance of companies within the scope of Istanbul Stock Exchange (ISE) Tourism index between 2009-2020. For this purpose, the Malmquist Total Factor Productivity index was created by using the financial ratios calculated from the financial statements of the companies. As a result of the study, it was determined that there was a significant decrease in the performances and productivity of tourism companies between 2016-2020. It has been revealed that the effects of the political crises that took place in Turkey were involved in the decrease in productivity in this period.

Evaluating the decentralization of public hospitals in Turkey in terms of technical efficiency: data envelopment analysis and Malmquist index

PurposeDecree Law No. 663 introduced a decentralized organizational structure and administration pertaining to Turkish public hospitals in November 2011. This study aims to explore the effects of the public hospital unions (PHUs), which were a result of Decree Law No. 663, on the efficiency and productivity of public hospitals.Design/methodology/approachData envelopment analysis (DEA) and DEA-based Malmquist total factor productivity (TFP) index were used from 2011 to 2016. Raw materials and supply expenses, salaries and fringe benefits, other service costs, general administrative expenses, total number of beds, number of specialists, number of residents, number of general practitioners, number of nurses and midwives and other medical officials were used as input variables. Working capital turnover, number of inpatients, number of outpatients and number of surgical operations for Groups A, B and C were used as output variables.FindingsAccording to the DEA scores, the percentage of efficient hospitals showed a declining trend from 2011 to 2016. The TFP results also showed a decreasing trend from 2011 to 2016.Practical implicationsProviding administrative and financial autonomy to public hospital managers may cause efficiency and productivity losses, which is contrary to expectations.Originality/valueThis study is the first to reveal the impact of decentralization of public healthcare providers on their performance levels in Turkey.

Evaluating the Efficiency and Productivity of Colombian Criminal Justice

Abstract In this paper, Data Envelopment Analysis (DEA) is used to calculate the technical efficiency and the Malmquist Total Factor Productivity Index (MPI) of the municipal (JM) and circuit courts (JC) of the ordinary jurisdiction of the Colombian criminal justice system, from 2012 to 2016. The results show an average technical inefficiency of 16, 9% for de JCs, and 17.3% for JMs. Additionally, we find a total factor productivity (TFP) decline for these courts of 24 and 44%, respectively. Although both components of the MPI registered average values lower than one, the decrease in TFP is mainly driven by the decline in the technical change component.

Levels, trends, and determinants of effectiveness on the hierarchical medical system in China: Data envelopment analysis and bootstrapping truncated regression analysis.

BackgroundThe hierarchical medical system (HMS) refers to the classification of treatment according to disease priorities based on severity and difficulty to promote the fairness of medical services for residents, which is regarded as the key to the success of medical reform in China.MethodsIn the past decade of “New Medical Reform,” the efficiency of HMS, including secondary and tertiary hospitals and primary healthcare centers (PHCs), was measured horizontally and vertically by employing the combination of an output-oriented superefficiency slack-based model-data envelopment analysis (SE-SBM-DEA) model with the Malmquist total factor productivity index (MTFP). In the second stage, the overall technical efficiency (OTE) scores were regressed against a set of environmental characteristics and several managerial factors through bootstrapping truncated regression.ResultsOn average, the OTE score in tertiary hospitals was 0.93, which was higher than that in secondary hospitals and PHCs (0.9 and 0.92, respectively). In terms of trend, the OTE of tertiary hospitals declined at first and then increased. The opposite was true of secondary hospitals, in which the APC of the OTE was 10.82 and −3.11% in early and late 2012, respectively. The PHCs generally showed a fluctuating downward trend. In the aspects of productivity, all institutions showed a downturn by an annual average rate of 2.73, 0.51, and 2.70%, respectively. There was a significant negative relationship between the ratio of outpatients to inpatients and tertiary hospitals. Additionally, the medical technical personnel per 1,000 population negatively affected PHCs. In contrast, the GDP per capita had a significantly positive effect on tertiary hospitals, and the number of beds per 1,000 population positively influenced PHCs.ConclusionThe efficiency of medical institutions at various levels in HMS was unbalanced and took the form of an “inverted pyramid.” Multilateral factors influence the efficiency of HMS, and to address it, multi-intervention packages focusing on sinking high-quality medical resources and improving healthcare capacity, and guiding hierarchical medical practice should be adopted.

A Two Stage Technical Efficiency of Primary Schools in Ethiopia: The Case of Harari Regional State

This study aims to estimate relative technical and scale efficiency of primary schools in Harari Region. To measure change in productivity of school for the period 2013-2019 and to determine factors that affecting the technical inefficiency of schools, quantitative approach with a two stage Data Envelopment Analysis (DEA) employed for measuring technical efficiency of schools. Malmquist Total Factor Productivity (MTFP) index was implemented to determine overall productivity growth of school within the given period. Censored Tobit regression model was used to determine factors affecting school’s inefficiency. The result of the Constant Return to Scale DEA model shows that 10(21.7%) schools were found technically efficient, while 36(78.3%) were inefficient. The VRS DEA model indicated that fourteen (30.4%) schools were technically efficient and thirty two (69.6%) schools were technically inefficient. Out of the total schools, 47.8% schools were found to be scale efficient, while 52.2% were scale inefficient. Further, non-government schools have higher efficiency scores (99.6 %) than their counterpart government schools (91.6%). The Tobit model regression result indicated that school’s ownership and location have a significant and negative sing, while coefficients of student-teacher ratio, student-class ratio and teacher’s qualification and experiences had a positive singe with inefficiency of schools. Keywords: Data envelopment analysis, technical efficiency, productivity, Tobit model. DOI: 10.7176/JEP/13-25-01 Publication date: September 30 th 2022

Dynamics of total factor productivity growth: An empirical analysis of Indian commercial banks

This paper investigates the total factor productivity (TFP) change scenario among Indian commercial banks during 1998–2017. We measure the change in the Malmquist TFP index and decompose this into technological, efficiency, and scale change components using data envelopment analysis (DEA). Further, the bootstrap-based Simar and Wilson (2007) procedure is applied to correct the bias from the conventional DEA estimates. We also explain the variations in TFP estimates using a set of bank-specific and macroeconomic variables with a system-generalised method of moments and bias-corrected fixed-effects models. Our results show an improvement in TFP among Indian commercial banks– with growth relatively higher during the pre-crisis than in the post-crisis period. The productivity gains are driven mainly by technological progress rather than efficiency improvements. Amongst different ownership categories, foreign-owned banks achieve the highest overall productivity gains, followed by the domestic privately owned and state-owned banks. Finally, our TFP regression results show that return on assets, diversification, GDP per capita, Herfindahl–Hirschman Index, and inflation are the main variables responsible for driving these total factor productivity differences.

Technical Efficiency of Rice Farmers in Telangana, India: Data Envelopment Analysis (DEA)

It is known that inability of the farmers to exploit the available production technologies results in lower efficiencies of production. So, the measurement of technical efficiency in agricultural crops in developing countries like India gained renewed attention since the late 1980s from an increasing number of researchers. Accordingly, the present study has employed Data Envelopment Analysis (DEA) and Malmquist Total Factor Productivity Index to ascertain the Technical Efficiency of rice productivity (2021-2022) and its changes over the study period (2019-2020 to 2021- 2022) respectively in Telangana, India. This study was based on secondary data pertaining to rice productivity (output variable), fertilizer doses (NPK), seed rate, water applied and organic manure (input variables). The findings of Data Envelopment Analysis revealed that the overall mean technical efficiency score across all the Decision-Making Units was 0.860 ranged between 0.592 to 1.000. So, the Decision-Making Units, on an average, could reduce their input usage by 14 per cent and still could produce the same level of rice output. Further, fertilizers (60.54 kg/ha); seed (5.63 kg/ha); water (234.48 mm) and organic manure (3.76 t/ha) use can be reduced without affecting the current level of rice productivity. Malmquist Total Factor Productivity indices (2019-2020 to 2021-2022) revealed that the mean scores of technical efficiency change, pure technical efficiency change and scale efficiency change are more than one (1.153, 1.042 and 1.009 respectively), unlike technological change (0.983). All the Decision-Making Units showed impressive progress with reference to technical efficiency change (1.112) and it is the sole contributor for Total Factor Productivity change in rice cultivation. The DEA results suggest that farmers should be informed about the use of inputs as per the scientific recommendations to boost the technical efficiency of rice productivity in Telangana. It also calls for policy initiatives for distribution of quality inputs to the farmers to boost technical efficiency in rice production.

Yenilenebilir Enerji - Ekonomik Büyüme İlişkisi Açısından Türkiye ve AB Ülkelerinin Malmquist Endeksi ile Performans İncelemesi

Nüfus artışı, teknolojik gelişmeler vb. birçok faktör dünyadaki enerji ihtiyacını ve tüketimini hızla artırmaktadır. Son dönemlerde kişi başına düşen enerji tüketiminin artması ciddi boyutlara ulaşmış, enerji üretiminde dışa bağımlığı azaltma ve küresel ekonomik rekabette belirleyici bir aktör olma hususları enerji üretiminin önemini artırmıştır. Bu sebeple, enerji kaynaklarına sahip olan ülkeler, ekonomik olarak diğer ülkelerden farklı bir konuma geçmiştir. Bununla birlikte, günümüzdeki çevre sorunları, fosil kaynakların tükenebilir olması veya fosil kaynaklara sahip olunmaması vb. sebepler yenilenebilir enerji kaynaklarına ilgiyi artırmıştır. AB’ye üyelik sürecinde, Türkiye ve AB ülkelerinin yenilenebilir enerji performanslarının zaman içinde değerlendirilmesi literatüre ve yapılacak çalışmalara da katkı sağlayacaktır. Bu çalışmanın amacı, yenilenebilir enerji ve ekonomik büyüme ilişkisi açısından Türkiye ve AB ülkelerinin verimlilikleri değerlendirmektir. Çalışma kapsamında yapılan literatür incelemesi sonucu yenilenebilir enerji göstergeleri ile ilgili 5 değişken belirlenmiştir. Girdi değişkenleri; CO2 Salınımı, Toplam Enerji Tüketimindeki Yenilenebilir Enerji kullanımı (YEK), İşgücü (EMP) çıktı değişkenleri; Kişi Başına GSYİH ve Toplam Enerji Arzının İçindeki Yenilenebilir Enerji Oranı (TEAYEO)’dır. Çalışmada, bahsi geçen ekonomik ve yenilenebilir enerji göstergeleri yardımıyla 2008-2015 döneminde AB ülkeleri ve Türkiye’nin performanslarındaki değişimler değerlendirilmiştir. Zaman içindeki verimliliğin gelişimini değerlendirebilmek için Malmquist Toplam Faktör Verimliliği (TFV) endeksi kullanılmıştır. Malmquist Endeksi, Veri zarflama analizi (VZA) temelli bir endeks olduğundan karar verme birimleri (KVB) arasında homojeniteyi sağlayabilmek amacıyla kümeleme analizi yapılmış ve benzer ülkeler gruplandırılmıştır. Çalışma sonucunda, 2008-2015 dönemdeki TFV ortalama değerlerine göre ülkeleri sıraladığımızda, Lüksemburg’un diğer ülkelerden kayda değer bir farkla birinci sırada yer aldığı görülmektedir. Lüksemburg’u sırasıyla Belçika, Türkiye, Bulgaristan, Hırvatistan Slovenya, Kıbrıs vd. ülkeler takip etmektedir. Türkiye’nin de ortalama TFVG değerine göre başarılı ülkelerden olduğu görülmektedir.

Malmquist total factor productivity index: A Review of wholesale and foreign trade sector in the Fortune 500 Turkey magazine

Malmquist total factor productivity index: A Review of wholesale and foreign trade sector in the Fortune 500 Turkey magazine

Estimation of China’s Green Investment Efficiency in Belt and Road Countries -Based on SBM-Undesirable Model and Malmquist Index Model

Green and low-carbon development is an important element of the Belt and Road Initiative, and a reasonable and objective evaluation of China’s green investment efficiency in B&R countries is of great significance to promote the sustainable development of those area. This paper applies the Slack-based measure model that considers undesirable outputs and Malmquist total factor productivity index to measure the efficiency of China’s green investment in B&R countries from 2011 to 2018 from both static and dynamic perspectives, as well as provides an in-depth analysis of the differences, changes, and influential factors. The empirical results reveal that the overall efficiency of China’s green investment in B&R countries is relatively low, showing a distinctly uneven trend and the main driving force of the decline in total factor productivity comes from technical change. Some significant differences have also been reported amongst these countries in terms of their industrial development and income levels. These findings provide a valuable reference for B&R countries to identify unique strategies that can promote their green total productivity factor.

ТЕОРЕТИКО-МЕТОДИЧНІ АСПЕКТИ ОЦІНКИ ЕФЕКТИВНОСТІ ДІЯЛЬНОСТІ ФАРМАЦЕВТИЧНИХ ПІДПРИЄМСТВ

The purpose of the article is to identify the most appropriate approaches to measuring the efficiency of pharmaceutical enterprises, classifying them, and developing the appropriate methodical approach. In search of appropriate approaches to measuring the efficiency of pharmaceutical enterprises, the authors considered the results of relevant studies that were published in the scientific literature in recent years. Regarding the Balanced Scorecard (BSC), it is determined that the use of the BSC system can be considered as a possible tool for measuring the efficiency of large pharmaceutical enterprises, whose activities and environment are not very variable, and whose strategies do not require frequent revision. Its use in the majority of Ukrainian pharmaceutical enterprises, which are not large companies, is inappropriate due to its inflexibility, high cost and complexity for small businesses. All identified performance indicators of pharmaceutical enterprises, depending on one or another aspect, are classified by the authors into seven groups according to the main characteristics. Analysing the existing methods of measuring efficiency in the pharmaceutical industry, the authors established that it is appropriate to develop a methodical approach to measure the efficiency of domestic pharmaceutical enterprises, which will use the most accurate and informative methods of non-parametric frontier analysis – Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH), as well as the Malmquist total factor productivity index (Malmquist TFP index). The article proposes a methodical approach to measuring the efficiency of pharmaceutical enterprises, which includes six stages using non-parametric methods of frontier efficiency analysis, in particular DEA, FDH, as well as the Malmquist TFP index. The obtained results should contribute to a better understanding of the essence of measuring the efficiency of pharmaceutical enterprises, as well as to improve the process of making informed managerial decisions regarding the improvement of the efficiency of their activities.

Renewable Energy and Economic Efficiency in the Framework of Sustainable Development: Malmquist Index and Tobit Model

Today, energy is as important as labour, capital and technology for the growth of countries. As countries grow economically, they try to achieve the same or more amounts of output with fewer inputs. In other words, countries target efficiency based growth. As the economic growth of countries increases, their energy requirements also increase. Regarding countries that are not rich in domestic resources, this increase, imposes significant costs. On the other hand, the finite energy supply in countries rich in domestic resources is an important problem. That is why the phenomenon of renewable energy has become a trend all over the world. In addition to reducing import dependence on energy, new policies are required to reduce the effects of climate changes and to protect natural resources. That is why; renewable energy and economic efficiency are an attractive research area. In the study, efficiency scores were obtained by calculating the Malmquist total factor productivity index in the period 1992–2018 for 10 countries among the N11 countries. Then, the efficiency values obtained by using the two stage estimation method were used as the dependent variables. The test results based on Tobit regression indicated that the increase in the supply of renewable energy positively increases economic efficiency. It can be said that the supply of renewable energy will lead to economic efficiency in the future.