ANALYSIS OF THE PUBLIC TRANSPORT EFFICIENCY, PRODUCTIVITY AND ECONOMIES OF SCALE: THE CASE OF SFAX – TUNISIA

Authors

  • Lassaad Makhlouf
  • Kamel Helali

DOI:

https://doi.org/10.2478/eoik-2024-0004

Keywords:

Public transport, Efficiency, Productivity, Economies of Scale, Translog Cost Function

Abstract

This study aimed to determine the efficiency and productivity of the production factors in the case of public transport in Sfax – the sec-ond most important agglomeration in Tunisia–. The analysis of factor productivity enabled identifying the shortcomings in the supply of this service and advocating certain strategies to boost supply. We use an estimation of the trans-logarithmic costs function with different restrictions while relying on the foundations of the microeconomic theory. We relied on annual statistical data from the Regional Trans-port Company in Sfax over the period preceding the COVID 19 crisis spanning from 1985 to 2018. The estimation results showed the pres-ence of scale diseconomies, the gain in productivity over the years is too slow. The technical progress of public transport in Sfax is very low and the technical efficiency is also very limited. The results revealed that there is a decline in productivity growth due to a growing ineffi-ciency throughout the study period. The underutilization of production capacities in the transport sector was judged as a consequence of excess of capacity and lack of effi-ciency attributed mainly to the lack of competition. The study identi-fied some external factors that have an impact on the measured effi-ciency but are outside the company control. Public authorities should act on these factors to help companies improve their performance.   A deregulation of the public transport sector by redefining the most important objectives has become urgent.

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Published

2024-02-11

How to Cite

Makhlouf, L. ., & Helali, K. . (2024). ANALYSIS OF THE PUBLIC TRANSPORT EFFICIENCY, PRODUCTIVITY AND ECONOMIES OF SCALE: THE CASE OF SFAX – TUNISIA. ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL, 12(1). https://doi.org/10.2478/eoik-2024-0004