Using the Malmquist Index in Evaluating the Productivity of Production Factors in Manufacturing Companies

Subject Areas : International Journal of Data Envelopment Analysis

Farhad Hosseinzadeh Lotfi ^{1 *} , leila taghizadetame ²

1 - گروه ریاضی، واحد علوم و تحقیقات، دانشگاه آزاد اسلامی، تهران، ایران
2 - Islamic Azad university science and research branch

Received: 2024-12-04 Accepted : 2024-12-15 Published : 2024-10-01

Keywords: Data Envelopment Analysis , Malmquist Index , Total Factor Productivity,

Abstract :

Productivity, a crucial aspect of economics, refers to the efficient use of resources to maximize output. In today’s world, enhancing productivity is vital for economic growth and competitiveness in global markets. Improvements in productivity lead to cost reductions, increased profitability, and better quality of products and services.

This study analyzes changes in total factor productivity by examining data from 20 manufacturing companies in the construction sector listed on the stock exchange. It aligns with the country’s Fifth Development Plan and uses the Malmquist Index as the primary tool for measuring productivity. The Malmquist Index assesses technical and scale efficiency to identify productivity changes over time.

The investigation covers the period from 2010 to 2013, reflecting various economic and market conditions. The findings can help managers and policymakers pinpoint strengths and weaknesses in production processes, offering strategies to enhance productivity and efficiency in the construction industry. Additionally, these results provide valuable insights for researchers and practitioners interested in productivity and efficiency.

Given the importance of the topic, this article contributes to understanding the factors affecting productivity in manufacturing and aids in developing strategies to improve the country’s economic performance.

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