Technical efficiency of companies in the footwear sector in zone 3 of Ecuador

Abstract:

This study analyzes the efficiency of the footwear manufacturing sector in Zone 3 of Ecuador through the technical efficiency indices of a group of companies located in the provinces of Chimborazo, Cotopaxi, Pastaza and Tungurahua in a period between 2013 and 2018. The non-parametric method of Data Envelopment Analysis (DEA) was used by determining inputs and outputs with a panel data analysis through linear regression and the evaluation of constant and variable returns was carried out. After conducting the study, it was observed that the average efficiency of the sector is 0.66; but a growing behavior of the same was shown in the period, and only 47% of the companies are in a range between 0.80 and 0.95; close to achieving technical efficiency. It is concluded that despite the previous findings, the indices found show inefficiency, as well as the need for companies to improve production processes with technological innovation, as well as the adequate use of inputs to guarantee better levels of efficiency for the sector.

Año de publicación:

2022

Keywords:

• production possibilities frontier
• footwear sector
• technical efficiency
• inefficiency
• Data envelope analysis

Fuente:

scopus