Analyzing the Productivity of Korea and China’s Road Freight Transport Industry: A Nonparametric Malmquist Approach

This paper estimates the annual Malmquist total factor productivity (TFP) index of Korea and China’s road freight transport industry using data envelope analysis (DEA) and decomposes the index into technical efficiency change and technology change. In the process of the estimation, labor, capital, and fuel are used as input factors and ton-km of road freight transport are used as the output factor. Panel data are based on Korea and China’s road freight transport industry from 1985-2004. Results of the analysis show: 1) there was no significant improvement in China’s TFP growth before 1997, but continuous growth in TFP since 1997 because of constantly increasing domestic freight transport demand; 2) there was a downward trend in Korea’s TFP, especially a large reduction of productivity in 1998, because of the huge reduction of road freight transport demand during a period of the economic crisis; and 3) technology improvements play a significant role in TFP growth and technical efficiency had negative effects on the TFP growth of Korea. However, technology improvements as well as technical efficiency had positive effects on the TFP growth of China’s road freight transport industry.

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  • Authors:
    • Ha, Hun-Koo
    • Lee, Sang-Won
    • Cheng, Zhao
  • Publication Date: 2006-12


  • English

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  • Accession Number: 01045132
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 22 2007 1:57PM