Economic efficiency in Spanish ports: some empirical evidence

In this study, a stochastic frontier cost function is used to estimate the econmic efficiency of Spanish ports through panel data. The sample covers annual data of 27 Spanish ports from 1985–1989. By comparing a Cobb-Douglas function with a translog, it is found that the latter best represents the technology according to the data. Analysing the efficiency indices obtained, it is found that the relatively larger ports are more economically inefficient. Moreover, the presence of large scale economies has been detected, as well as a lack of technical progress for the period considered.