Technical Efficiency Analysis in Turkey’s Mining and Quarrying Industry by Data Envelopment Analysis (DEA)


Hasözdemir K.

Insights in Mining Science & Technology, vol.3, no.2, pp.1-7, 2022 (Peer-Reviewed Journal)

Abstract

The main purpose of this study is to explain the methodology of Data Envelopment Analysis (DEA), which is a linear programming based non-parametric method to analyze the comparative efficiency of an operation. Two different output-oriented DEA models (Constant Return to Scale and Variable Return to Scale) are applied to a data set to investigate the Turkey’s mining and quarrying industry’s technical efficiency between the years of 2003-2017 and result are shown and interpreted. In addition, possible improvements for the inefficient years to be considered as efficient are also given. The data used in this study is obtained from Turkish Statistical Institute’s database and DEA applied via an online solver at (www.deaos.com). The input data that is used for the analysis was average salary of the workers and purchase of goods and services, while the only output was total production.