The Journal of Fisheries Business Administration (수산경영론집)

The Korean Society of Fisheries Business Administration (한국수산경영학회)
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Technical efficiency of the coastal composite fishery in Korea: a comparison of data envelopment analysis and stochastic frontier analysis

  • Kim, Do-Hoon (Technology Management Center, National Fisheries Research & Development Institute) ;
  • Seo, Ju-Nam (Technology Management Center, National Fisheries Research & Development Institute) ;
  • Lee, Sang-Go (Faculty of Marine Business and Economics, Pukyong National University)
  • Received : 2010.11.30
  • Accepted : 2010.12.15
  • Published : 2010.12.31
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Abstract

This study estimated the technical efficiency of coastal composite fishery in Korea by using the data envelopment analysis (DEA) and the stochastic frontier analysis (SFA) methods, and the results on the respective method were compared. In the DEA method, the constant returns to scale (CRS) and the variable returns to scale (VRS) output-oriented DEA models were separated and technical efficiencies were estimated, respectively. The average estimated value of technical efficiency by the SFA method (0.633) was found to be lower than that by the VRS-DEA method (0.738), while it was higher than that by the CRS-DEA method (0.479). It was found that strong correlation exists between the SFA method and the VRS-DEA method. The method which can utilize both methods in mutually complementing way for the estimation of technical efficiency was also considered.

Keywords

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