A Study on the Comparison of Korea Large-sized Ports' Efficiencies Using DEA and SFA

This study explores the efficiency of the Korean large-sized seaports using DEA(data envelopment analysis) and SFA(stochastic frontier analysis) and then the relationships between seaport efficiency and seaport infrastructures. Main finding facts are 1)there are some differences among relative efficiency levels, but almost no differences among efficiency ranks. 2)variable returns to scale(VRS) model's values are higher than constant returns to scale(CRS) model's values and the differences between DEA CRS's and DEA VRS's efficiency values are much larger compared with SFA CRS and VRS values' differences. 3)the tendency of DRS is stronger in Korea's seaports during the past several years. In particular, large seaports have strong tendency toward DRS over time. 4) Berth length and container yard area have negative effects on the efficiency in our models. Cargo volume has strong positive effects on the seaport efficiency. Our model need some improvement in terms of the model change from single output to multi output, the selection of other functional forms, and the usage of the other methods. More statistical data and researches will be helpful to understand the seaport production phenomena, especially in Asian highly growing areas. we need consider serious overinvestment problems of airports and seaports through various efficiency analyses.