Efficiency of Polish metallurgical industry based on data envelopment analysis

Abstract

The main purpose of this paper is to compare the technical efficiency of 12 sectors manufacturing basic metals and metal products in Poland. This article presents the use of Data Envelopment Analysis models, to determine overall technical efficiency, pure technical efficiency and scale efficiency of metallurgical branches in Poland. The average technical efficiency of metallurgical industry in Poland was quite high. The analysis gives a possibility to create a ranking of sectors. Three branches were found to be fully efficient: manufacture of basic iron and steel and of ferroalloys, manufacture of basic precious and other non - ferrous metals and manufacture of tubes, pipes, hollow profiles and related fittings, of steel. The results point out the reasons of the inefficiency and provide improving directions for the inefficient sectors.