The Evaluation of Productivity Change of the Construction Companies in Thailand: An Application of Malmquist Index

Abstract

The objectives of this paper aim to estimate the efficiency scores of the top 20 construction companies of Thailand ranked by their profit earnings in 2009, and to detect the nature of the productivity change during the 2005–2009 periods. In this study, the traditional data envelopment analysis (DEA) based on input – oriented approach and the Malmquist index are estimated in order to serve these objectives. The results showed that although the construction com- panies earned large amount of profits in 2009, 12 companies (RT, ACC, CUEL, TOC, VAT, CMC, STEC, SYNTEC, CK, ST, TRC, and CNT) still operated below the efficient frontier line, while the Malmquist Index indicated the productivity change of the construction firms especially during 2007/2008 period.