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Technical efficiency of the coastal composite fishery in Korea:a comparison of data envelopment analysis and stochastic frontier analysis
2011-01-03
Do-Hoon Kim*, Ju-Nam Seo** and Sang-Go Lee***
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Technical efficiency is an important index to decide whether a specific firm is productive or
profitable since it is to measure production efficiency derived from output and input factors of
the firm. Comparison of efficiencies of firms enables an individual firm to examine and
improve its business conditions and to establish management strategies. Furthermore,
technical efficiencies can be utilized to figure out the productivity level of firms of a certain
industry and to compare it with that of other countries, so that they would be important data
for establishing policies for the economically viable and competitive development of an
industry.