Efficiency analysis of catalonia's construction industry pre- And postfinancial crisis: A data envelopment analysis (dea) approach

Abstract

By employing a non-parametric technique rooted in economic production theory-i.e., Data Envelopment Analysis (DEA)-this study evaluates the efficiency level of construction businesses operating in the Spanish region of Catalonia. The empirical application considers a dataset including information for more than 1000 construction businesses from Catalonia during the period 2005-2016. The empirical results reveal that the efficiency level in the Catalan construction industry drastically fell during the period of economic downturn (2009-2012). Also, the findings show that efficiency in the industry improves after 2013; however, the speed of recovery is heterogeneous across businesses. A further analysis highlights that business size is a relevant factor explaining efficiency differences among the sampled businesses: Efficiency is evidently lower in micro businesses compared to the figures reported for small and medium and large construction firms.