Analysis of static and dynamic productivity growth in the Spanish meat processing industry

This paper estimates static Malmquist and dynamic Luenberger productivity growth measures and decomposes these to identify the contributions of technical change, technical efficiency change and scale efficiency change. The Malmquist and Luenberger productivity growth measures are estimated using Data Envelopment Analysis. The empirical application uses data on Spanish meat processing firms over the period 2000-2010. The dynamic Luenberger indicator and the static Malmquist index show, in the period under investigation, a productivity decrease of, on average, 0.3% and 1% respectively. In both measures, the technical regress is the main driver of change, despite the technical and scale efficiency growth.