Non-parametric Performance Evaluation of Container Ports

Abstract:

This paper analyses the performance of major container ports in Asia using the non-parametric approach. Because of the known sensitivity of the traditional non-parametric approaches such as Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH) to extreme values or outliers, small sample size and slow convergence rates of e±ciency estimates, this study employs an alternative robust non-parametric technique called order-m estimator following Cazals et al. (2002) to evaluate the e±ciency of container ports. In this study, we conduct two analyses comprising order-m and Free Disposal Hull (FDH), and rank the container ports with the order-m e±ciency estimates. The estimate are robust with respect to outliers in the data.