An empirical anaysis of efficiency and productivity change in the global automotive industry : a Malmquist productivity index approach

Abstract

This thesis examines productivity changes in automotive sectors of 26 industrial and developing countries over the period 1973-2002. Using data envelopment analysis, Malmquist productivity change indices are computed and decomposed into technical change and efficiency change components. The results show that productivity improvements by the industrial countries were attained through technical change while productivity gains of developing countries mainly arose from efficiency change. It is found that the performance of Turkey was similar to the average of developing countries showing a better performance in catching-up effect. Moreover, for the countries in the sample, automotive sector labor productivity changes are calculated. Comparing the labor productivity change and Malmquist change rankings of the countries, it is concluded that the best performer countries in terms of labor productivity change are also the best performers in terms of Malmquist productivity change index.