Total Factor Productivity Growth, Technical Progress and Efficiency Change in Vietnam Coal Industry – Nonparametric Approach

Abstract

This research applies Data Envelopment Analysis (DEA) approach to analyse Total Factor Productivity (TFP) and efficiency changes in Vietnam coal mining industry from 2007 to 2013. The Malmquist productivity measures were decomposed into two components: technical change index and efficiency change index. The results indicate that TFP of Vietnam coal mining firms decreased due to slow technological progress and unimproved efficiency. The decadence of technical efficiency in many firms proved that the coal mining industry has a large potential to increase productivity through technical efficiency improvement. Enhancing human resource training, technology and research & development investment could help the industry to improve efficiency and productivity in Vietnam coal mining industry.

Keywords: Technical and Scale Efficiency, Total Factor Productivity, Nonparametric Techniques, Vietnam.

JEL Code: O47, O50

DOI: 10.7176/EJBM/11-12-16

Publication date: April 30^th 2019