Regional Economics: Theory and Practice

DEA analysis of the efficiency of the single-industry city's economy

Vol. 15, Iss. 12, DECEMBER 2017

PDF  Article PDF Version

Received: 16 August 2017

Received in revised form: 4 October 2017

Accepted: 23 October 2017

Available online: 14 December 2017


JEL Classification: C15, C22, C81, M21, O12

Pages: 2378–2390

Vazhdaev A.N. Yurga Institute of Technology, Branch of National Research Tomsk Polytechnic University, Yurga, Kemerovo Oblast, Russian Federation

Mitsel' A.A. Tomsk State University of Control Systems and Radioelectronics (TUSUR), Tomsk, Russian Federation

Importance This article discusses the issues of analysis of the effectiveness of various branches of small business economy in a single-industry town.
Objectives The article aims to analyze the effectiveness of various small business sectors' development based on correlation data between the city indicators and the aggregated small business ones.
Methods The Data Envelopment Analysis (DEA) method was used to analyze the performance of different small business sectors on a per-industry basis. The research applies a DEA output-oriented model. To successfully solve the analysis task, the source data has been modified in such a way that the link between input and output is directly proportional, as required in the DEA model.
Results The results obtained made it possible to visualize the changes in the performance of the considered sectors of urban economy during the survey period.
Conclusions and Relevance The analysis suggests that it is possible to apply the DEA method together with the modification of the survey data, both in the primary economic analysis and in the ongoing monitoring of the performance of individual industries. The described method of DEA performance analysis can encourage small businesses to develop an optimal strategy for their own development in the city's economy.

Keywords: DEA, small business, monotown, economy branch, efficiency analysis


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