Handbook of International Trade and Transportation
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Handbook of International Trade and Transportation

Edited by Bruce A. Blonigen and Wesley W. Wilson

International trade has grown rapidly over the past half century, accommodated by the transportation industry through concomitant growth and technological change. But while the connection between transport and trade flows is clear, the academic literature often looks at these two issues separately. This Handbook is unique in pulling together the key insights of each field while highlighting what we know about their intersection and ideas for future research in this relatively unexamined but growing area of study.
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Chapter 15: DEA and transportation efficiency

Kevin Hyosoo Park and Young-Tae Chang

Abstract

Efficiency gains in transport operation benefit transport operators by increasing competitive advantage. Moreover, they increase social welfare through reduction in trade costs. A popular method to measure efficiency is data envelopment analysis (DEA), a programming-based technique. This chapter summarizes key DEA models used in transportation and international trade research. The authors explain divergent DEA models, such as CCR, BCC, and directional distance function. They go on to cover some of the recent applications, for example bootstrapped truncated regression, to find determinants of efficiency. In each section, they review relevant studies in the transportation or international trade sector. Lastly, they suggest directions for future research.

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