The Portuguese Manufacturing Sector during 2013-2016 after the Troika Austerity Measures
Article Sidebar
Published
Jun 1, 2018
Main Article Content
Abstract
This work studies some of the effects of the Troika austery measures on the manufacturing Portuguese firms in terms of efficiency scores. We adopted a non-parametric approach, which combines multidirectional efficiency analysis with other techniques, to examine two empirical hypotheses after the financial crisis and corresponding intervention of the Troika measures: (a) the performance of firms in the manufacturing sector has improved; (b) the manufacturing sector significantly acquired long-term debt but use it in an efficient way. Our results show that validation of the first hypothesis heavily depend on the firm size, and the second hypothesis is correct only with respect to long-term debt acquiring. In fact, some sectors have managed to maintain an acceptable level of efficiency, according to the circumstances, however, most showed some inefficient level in the management of resources and less than 10% were able to overcome the difficulties presented after the intervention of the Troika. In approx. 77% of firms there was an acquisition of long-term debts, but it was the variable that was used less efficient.
Downloads
Download data is not yet available.
Article Details
How to Cite
Murillo, K. and Rocha, E. (2018) “The Portuguese Manufacturing Sector during 2013-2016 after the Troika Austerity Measures”, World Journal of Applied Economics, 4(1), pp. 21-38. doi: 10.22440/wjae.4.1.2.
Issue
Section
Research Articles
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
All published articles are licensed under Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Licence. Please visit Copyright Page for details.
References
Abreu, A., Mendes, H., & Rodrigues, J. (2013). A Crise, a Troika e as Alternativas Urgentes. Tinta-da-China.
Amador, J. (2011). Productivity, Size and Capital Intensity in Selected Portuguese Manufacturing Sectors: A Non-parametric Analysis. Economic Bulletin and Financial Stability Report Articles.
Amador, J., & Opromolla, L. D. (2009). Textiles and Clothing Exporting Sectors in Portugal- Recent Trends. Banco de Portugal Economic Bulletin Spring, 145-166.
Asmild, M., Balezentis, T., & Hougaard, J. L. (2016). Multi-directional Program Efficiency: The Case of Lithuanian Family Farms. Journal of Productivity Analysis, 45 (1), 23-33. DOI: 10.1007/s11123-014-0419-6.
Asmild, M., Holvad, T., Hougaard, J. L., & Kronborg, D. (2009). Railway Reforms: Do They In
uence Operating Efficiency? Transportation, 36 (5), 617-638. DOI: 10.1007/s11116-009-9216-x.
Asmild, M., & Pastor, J. T. (2010). Slack Free MEA and RDM with Comprehensive Efficiency Measures. Omega, 38 (6), 475-483. DOI: 10.1016/j.omega.2009.12.004.
Balezentis, T., & De Witte, K. (2015). One- and Multi-directional Conditional Efficiency Measurement - Efficiency in Lithuanian family farms. European Journal of Operational Research, 245 (2), 612-622. DOI: 10.1016/j.ejor.2015.01.050.
Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis. Management science, 30 (9), 1078-1092. DOI: 10.1287/mnsc.30.9.1078.
Bi, G., Wang, P., Yang, F., & Liang, L. (2014). Energy and Environmental Efficiency of China's Transportation Sector: A Multidirectional Analysis Approach. Mathematical Problems in Engineering, 2014 . DOI: 10.1155/2014/539596.
Blattner, L., Rebelo, F., & Farinha, L. (2016). What Holds Investment Back Post-Crisis? Evidence from the 2013 Investment Tax Credit in Portugal [Mimeo].
Bogetoft, P., & Hougaard, J. L. (1999). Efficiency Evaluations Based on Potential (Non-proportional) Improvements. Journal of Productivity Analysis, 12 (3), 233-247. DOI: 10.1023/A:1007848222681.
Bogetoft, P., & Hougaard, J. L. (2004). Super Efficiency Evaluations Based on Potential Slack. European Journal of Operational Research, 152 (1), 14-21. DOI: 10.1016/S0377-2217(02)00642-2.
Bogetoft, P., & Otto, L. (2011). Benchmarking with DEA, SFA, and R (Vol. 157). International Series in Operations Research and Management Science, Springer Science & Business Media.
Broughton, A., & Welz, C. (2013). Impact of the Crisis on Industrial Relations [European Foundation for the Improvement of Living and Working Conditions (Eurofound), Dublin]. Retrieved from https://www.eurofound.europa.eu/sites/default/files/ef files/docs/eiro/tn1301019s/tn1301019s.pdf.
Cabral, L. M. (2007). Small Firms in Portugal: A Selective Survey of Stylized Facts, Economic Analysis, and Policy Implications. Portuguese Economic Journal, 6 (1), 65-88. DOI: 10.1007/s10258-007-0018-9.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the Efficiency of Decision Making Units. European journal of operational research, 2 (6), 429-444. DOI: 10.1016/0377-2217(78)90138-8.
Costa, H. A. (2012). From Europe as a Model to Europe as Austerity: The Impact of the Crisis on Portuguese Trade Unions. Transfer: European Review of Labour and Research, 18 (4), 397-410. DOI: 10.1177/1024258912458866.
Dray, S. (2008). On the Number of Principal Components: A Test of Dimensionality Based on Measurements of Similarity Between Matrices. Computational Statistics & Data Analysis, 52 (4), 2228-2237. DOI: 10.1016/j.csda.2007.07.015.
Dyson, R. G., Allen, R., Camanho, A. S., Podinovski, V. V., Sarrico, C. S., & Shale, E. A. (2001). Pitfalls and Protocols in DEA. European Journal of operational research, 132 (2), 245-259. DOI: 10.1016/S0377-2217(00)00149-1.
Eichenbaum, M., Rebelo, S., & de Resende, C. (2016). The Portuguese Crisis and the IMF (Background Paper No. BP/16-02/05). Independent Evaluation Office of the International Monetary Fund.
Gonzalez, P. (2014). Gender Issues of the Recent Crisis in Portugal. Revue de l'OFCE(2), 241-275. DOI: 10.3917/reof.133.0241.
Gurnani, S. (2016). The Financial Crisis in Portugal: Austerity in Perspective [The Libraries Student Research Prize, Paper 9]. Retrieved from https://preserve.lehigh.edu/library-research-prize/9.
Heyes, J., & Hastings, T. (2016). Where Now for Flexicurity? Comparing Post-crisis Labour Market Policy Changes in the European Union [Global Political Economy Brief].
Hollingsworth, B., & Smith, P. (2003). Use of Ratios in Data Envelopment Analysis. Applied Economics Letters, 10 (11), 733-735. DOI: 10.1080/1350485032000133381.
Kapelko, M., & Lansink, A. O. (2017). Dynamic Multi-directional Inefficiency Analysis of European Dairy Manufacturing Firms. European Journal of Operational Research, 257 (1), 338-344. DOI: 10.1016/j.ejor.2016.08.009.
Matias, F., Baptista, C., & Salsa, L. (2015). Capital Structure of Portuguese Manufacturing Industry SMEs: An Analysis with Panel Data. Tourism & Management Studies, 11 (2), 120-129. DOI: 10.18089/tms.2015.11215.
Matos, F. L. d., Miramontes Carballada, A., Marques, T. S., & Ribeiro, D. (2015). Housing in a Time of Crisis: Portugal and Spain an Overview. In Proceeding of the Annual Conference ENHR 2015 Housing and Cities in a Time of Change: Are We Focusing on People? Retrieved from http://hdl.handle.net/10216/80155.
Mohd Suhaimi, N. A. B., de Mey, Y., & Oude Lansink, A. (2017). Measuring and Explaining Multi-directional Inefficiency in the Malaysian Dairy Industry. British Food Journal, 119 (12), 2788-2803. DOI: 10.1108/BFJ-11-2016-0549.
Nogueira, M. C., Afonso, O., & Soukiazis, E. (2017). Skill Premium in Portuguese Manufacturing Industries. Applied Economics Letters, 1-4. DOI: 10.1080/13504851.2017.1391993.
Pearson, K. (1901). LIII. On Lines and Planes of Closest Fit to Systems of Points in Space. The London, Edinburgh, and Dublin Philosophical Magazine and Journal of Science, 2 (11), 559-572. DOI: 10.1080/14786440109462720.
Pechankova, K. (2016). Participation of Portuguese Manufacturing Industry in Global Value Chains (Master Thesis). School of Technology and Management of the Polytechnic Institute of Leiria.
Pedroso, P. (2014). Portugal and the Global Crisis: The Impact of Austerity on the Economy, the Social Model and the Performance of the State (Report of the Project \Social Cohesion and the State in Times of Austerity"). Friedrich-Ebert-Stiftung. Retrieved from http://library.fes.de/pdf-files/id/10722.pdf.
Petmesidou, M., & Guillen, A. (2015). Economic Crisis and Austerity in Southern Europe: Threat or Opportunity for a Sustainable Welfare State (European Social Observatory Paper Series No. 18).
Robert, P., & Escoufier, Y. (1976). A Unifying Tool for Linear Multivariate Statistical Methods: The RV- Coefficient. Journal of the Royal Statistical Society. Series C (Applied Statistics), 25 (3), 257-265. DOI: 10.2307/2347233.
Scherr, F. C., & Hulburt, H. M. (2001). The Debt Maturity Structure of Small Firms. Financial Management, 30 (1), 85-111.
Vermoesen, V., Deloof, M., & Laveren, E. (2013). Long-term Debt Maturity and Financing Constraints of SMEs During the Global Financial Crisis. Small Business Economics, 41 (2), 433-448. DOI: 10.1007/s11187-012-9435-y.
Wang, B., Nistor, I., Murty, T., & Wei, Y.-M. (2014). Efficiency Assessment of Hydroelectric Power Plants in Canada: A Multi Criteria Decision Making Approach. Energy Economics, 46 , 112-121. DOI: 10.1016/j.eneco.2014.09.001.
Wang, K., Wei, Y.-M., & Zhang, X. (2013). Energy and Emissions Efficiency Patterns of Chinese Regions: A Multi-directional Efficiency Analysis. Applied Energy, 104 , 105-116. DOI: 10.1016/j.apenergy.2012.11.039.
Amador, J. (2011). Productivity, Size and Capital Intensity in Selected Portuguese Manufacturing Sectors: A Non-parametric Analysis. Economic Bulletin and Financial Stability Report Articles.
Amador, J., & Opromolla, L. D. (2009). Textiles and Clothing Exporting Sectors in Portugal- Recent Trends. Banco de Portugal Economic Bulletin Spring, 145-166.
Asmild, M., Balezentis, T., & Hougaard, J. L. (2016). Multi-directional Program Efficiency: The Case of Lithuanian Family Farms. Journal of Productivity Analysis, 45 (1), 23-33. DOI: 10.1007/s11123-014-0419-6.
Asmild, M., Holvad, T., Hougaard, J. L., & Kronborg, D. (2009). Railway Reforms: Do They In
uence Operating Efficiency? Transportation, 36 (5), 617-638. DOI: 10.1007/s11116-009-9216-x.
Asmild, M., & Pastor, J. T. (2010). Slack Free MEA and RDM with Comprehensive Efficiency Measures. Omega, 38 (6), 475-483. DOI: 10.1016/j.omega.2009.12.004.
Balezentis, T., & De Witte, K. (2015). One- and Multi-directional Conditional Efficiency Measurement - Efficiency in Lithuanian family farms. European Journal of Operational Research, 245 (2), 612-622. DOI: 10.1016/j.ejor.2015.01.050.
Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis. Management science, 30 (9), 1078-1092. DOI: 10.1287/mnsc.30.9.1078.
Bi, G., Wang, P., Yang, F., & Liang, L. (2014). Energy and Environmental Efficiency of China's Transportation Sector: A Multidirectional Analysis Approach. Mathematical Problems in Engineering, 2014 . DOI: 10.1155/2014/539596.
Blattner, L., Rebelo, F., & Farinha, L. (2016). What Holds Investment Back Post-Crisis? Evidence from the 2013 Investment Tax Credit in Portugal [Mimeo].
Bogetoft, P., & Hougaard, J. L. (1999). Efficiency Evaluations Based on Potential (Non-proportional) Improvements. Journal of Productivity Analysis, 12 (3), 233-247. DOI: 10.1023/A:1007848222681.
Bogetoft, P., & Hougaard, J. L. (2004). Super Efficiency Evaluations Based on Potential Slack. European Journal of Operational Research, 152 (1), 14-21. DOI: 10.1016/S0377-2217(02)00642-2.
Bogetoft, P., & Otto, L. (2011). Benchmarking with DEA, SFA, and R (Vol. 157). International Series in Operations Research and Management Science, Springer Science & Business Media.
Broughton, A., & Welz, C. (2013). Impact of the Crisis on Industrial Relations [European Foundation for the Improvement of Living and Working Conditions (Eurofound), Dublin]. Retrieved from https://www.eurofound.europa.eu/sites/default/files/ef files/docs/eiro/tn1301019s/tn1301019s.pdf.
Cabral, L. M. (2007). Small Firms in Portugal: A Selective Survey of Stylized Facts, Economic Analysis, and Policy Implications. Portuguese Economic Journal, 6 (1), 65-88. DOI: 10.1007/s10258-007-0018-9.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the Efficiency of Decision Making Units. European journal of operational research, 2 (6), 429-444. DOI: 10.1016/0377-2217(78)90138-8.
Costa, H. A. (2012). From Europe as a Model to Europe as Austerity: The Impact of the Crisis on Portuguese Trade Unions. Transfer: European Review of Labour and Research, 18 (4), 397-410. DOI: 10.1177/1024258912458866.
Dray, S. (2008). On the Number of Principal Components: A Test of Dimensionality Based on Measurements of Similarity Between Matrices. Computational Statistics & Data Analysis, 52 (4), 2228-2237. DOI: 10.1016/j.csda.2007.07.015.
Dyson, R. G., Allen, R., Camanho, A. S., Podinovski, V. V., Sarrico, C. S., & Shale, E. A. (2001). Pitfalls and Protocols in DEA. European Journal of operational research, 132 (2), 245-259. DOI: 10.1016/S0377-2217(00)00149-1.
Eichenbaum, M., Rebelo, S., & de Resende, C. (2016). The Portuguese Crisis and the IMF (Background Paper No. BP/16-02/05). Independent Evaluation Office of the International Monetary Fund.
Gonzalez, P. (2014). Gender Issues of the Recent Crisis in Portugal. Revue de l'OFCE(2), 241-275. DOI: 10.3917/reof.133.0241.
Gurnani, S. (2016). The Financial Crisis in Portugal: Austerity in Perspective [The Libraries Student Research Prize, Paper 9]. Retrieved from https://preserve.lehigh.edu/library-research-prize/9.
Heyes, J., & Hastings, T. (2016). Where Now for Flexicurity? Comparing Post-crisis Labour Market Policy Changes in the European Union [Global Political Economy Brief].
Hollingsworth, B., & Smith, P. (2003). Use of Ratios in Data Envelopment Analysis. Applied Economics Letters, 10 (11), 733-735. DOI: 10.1080/1350485032000133381.
Kapelko, M., & Lansink, A. O. (2017). Dynamic Multi-directional Inefficiency Analysis of European Dairy Manufacturing Firms. European Journal of Operational Research, 257 (1), 338-344. DOI: 10.1016/j.ejor.2016.08.009.
Matias, F., Baptista, C., & Salsa, L. (2015). Capital Structure of Portuguese Manufacturing Industry SMEs: An Analysis with Panel Data. Tourism & Management Studies, 11 (2), 120-129. DOI: 10.18089/tms.2015.11215.
Matos, F. L. d., Miramontes Carballada, A., Marques, T. S., & Ribeiro, D. (2015). Housing in a Time of Crisis: Portugal and Spain an Overview. In Proceeding of the Annual Conference ENHR 2015 Housing and Cities in a Time of Change: Are We Focusing on People? Retrieved from http://hdl.handle.net/10216/80155.
Mohd Suhaimi, N. A. B., de Mey, Y., & Oude Lansink, A. (2017). Measuring and Explaining Multi-directional Inefficiency in the Malaysian Dairy Industry. British Food Journal, 119 (12), 2788-2803. DOI: 10.1108/BFJ-11-2016-0549.
Nogueira, M. C., Afonso, O., & Soukiazis, E. (2017). Skill Premium in Portuguese Manufacturing Industries. Applied Economics Letters, 1-4. DOI: 10.1080/13504851.2017.1391993.
Pearson, K. (1901). LIII. On Lines and Planes of Closest Fit to Systems of Points in Space. The London, Edinburgh, and Dublin Philosophical Magazine and Journal of Science, 2 (11), 559-572. DOI: 10.1080/14786440109462720.
Pechankova, K. (2016). Participation of Portuguese Manufacturing Industry in Global Value Chains (Master Thesis). School of Technology and Management of the Polytechnic Institute of Leiria.
Pedroso, P. (2014). Portugal and the Global Crisis: The Impact of Austerity on the Economy, the Social Model and the Performance of the State (Report of the Project \Social Cohesion and the State in Times of Austerity"). Friedrich-Ebert-Stiftung. Retrieved from http://library.fes.de/pdf-files/id/10722.pdf.
Petmesidou, M., & Guillen, A. (2015). Economic Crisis and Austerity in Southern Europe: Threat or Opportunity for a Sustainable Welfare State (European Social Observatory Paper Series No. 18).
Robert, P., & Escoufier, Y. (1976). A Unifying Tool for Linear Multivariate Statistical Methods: The RV- Coefficient. Journal of the Royal Statistical Society. Series C (Applied Statistics), 25 (3), 257-265. DOI: 10.2307/2347233.
Scherr, F. C., & Hulburt, H. M. (2001). The Debt Maturity Structure of Small Firms. Financial Management, 30 (1), 85-111.
Vermoesen, V., Deloof, M., & Laveren, E. (2013). Long-term Debt Maturity and Financing Constraints of SMEs During the Global Financial Crisis. Small Business Economics, 41 (2), 433-448. DOI: 10.1007/s11187-012-9435-y.
Wang, B., Nistor, I., Murty, T., & Wei, Y.-M. (2014). Efficiency Assessment of Hydroelectric Power Plants in Canada: A Multi Criteria Decision Making Approach. Energy Economics, 46 , 112-121. DOI: 10.1016/j.eneco.2014.09.001.
Wang, K., Wei, Y.-M., & Zhang, X. (2013). Energy and Emissions Efficiency Patterns of Chinese Regions: A Multi-directional Efficiency Analysis. Applied Energy, 104 , 105-116. DOI: 10.1016/j.apenergy.2012.11.039.