Efficiency Assessment of Colombian Companies operating within the Coal Sector
Abstract
This research paper assesses the technical efficiency of Colombian companies mining coal and its derivatives during the 2011–2014 period. This study is theoretically grounded on concepts from data envelopment analysis (DEA), specifically the CCR-O model, focused on outputs and on multiple discriminant analysis, which is a multivariate technique. As part of research development, a rational empirical study was conducted using an evaluative approach to establish a DEA structure aimed at assessing efficiencies. Fourteen large mining companies in Colombia participated in this study, employing information reported by the Superintendence of Mining Companies for the corresponding period as a primary source of data. Based on the DEA structure, company efficiencies were assessed, and benchmarks for the evaluation of inefficient companies were established. Next, output variables were estimated to allow inefficient companies to reach the corresponding efficiency levels according to the output-based CCR-O model. Finally, the discriminant analysis technique was deployed to validate whether companies operating within the sector are susceptible to becoming more efficient or not. Average company efficiency under the DEA model during the study period reached a high level of 84.5 %, and the discriminant analysis technique indicated a validation of 80.3 %. This work provides criteria for decision makers to improve efficiency within the sector.
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References
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