Role of location in railway sector efficiency

For this research work we have selected one of the most traditional sectors, railway transports and its efficiency, to be explained using country's location. Our results show that in Data Envelopment Analysis (DEA) models in some cases efficiency differences are explained by 20 40% with location. Driver is typically longitude. Explanation power is best in efficiency models, where financial outputs are used. However, found relationship is diminishing in several situations, when USA is removed from observation points in other words the whole found relationship is US biased, particularly in freight sector, and with older data.