Industrial park efficiency in Taiwan

This paper analyzes the efficiency of fifty-seven industrial parks in Taiwan from 2000 to 2004 by applying the data envelopment analysis (DEA) approach to compute the efficiency scores. This study uses five input variables, including the number of firms, firm area,capital stock, utility maintenance fee, and number of employees, and one output, operating value. The industrial parks are clustered into four locations and seven environmental variables are introduced to analyze the effect. All nominal variables have been transformed into real variables at the 2001 price level by GDP deflators. Our major findings are as follows: The larger the numbers of firms engaged in production and the ratio of on-going production area are, the more efficient the industrial park will be. The more efficient an industrial zone is, the higher the local unemployment rate will be. The overall technical efficiency rankings of these industrial parks locations from high to low are north, central,south, and east.