Assessment of the Efficiency of the Spanish Construction Industry Using Parametric Methods: Case Study

Abstract

This paper assesses technical efficiency and its determinants in the Spanish construction sector from a comparative perspective for the period 2000 to 2010 by using different parametric approaches in the form of stochastic frontier models. The main results reveal similar (no) influential factors on efficiency. For all models, the determinants found were capital intensity, prefinancial and postfinancial crisis periods, and workers’ skills. There was no difference in terms of sign and statistical significance. Firm age was positively related to efficiency in two of the three models. Firm size was not significant in any model. Finally, the average efficiency values obtained by the models are 55.3, 69.2, and 91.0%, suggesting the possibility of significant improvements in resource management.