Evaluation of the Construction Sector: a Data Envelopment Analysis Approach

This article deals with the evaluation of the efficiency of the construction sector at the level of individual EU countries. The construction sector is an integral part of the economy in every country, and has a considerable impact on the economy. Efficiency is calculated using a non-parametric deterministic method of data envelopment analysis. Radial input-oriented models are constructed separately for individual years. The gross output and value added variables are used as the output variables. The labor and capital factors (i.e., inputs) are expressed using the total hours worked and nominal gross fixed capital formation variables. The data used are contained in the EU KLEMS database. The results show that countries such as Austria and Belgium are efficient throughout the period under review. The efficiency of the Austrian construction industry is largely determined not only by a high increase in production volume ( output of construction, construction of civil engineering and construction of buildings), but also by an increase in labor productivity in this sector which is above the European average.