The problem is that I want to use exporters as a DMU with their commodity exports as output, K, L and M are the variables needed to produce the output. The end result will be the perceived frontier, which each commodity is associated with individually and as meta. In turn this will be used to as a policy tool to confirm shift in policy focus to less efficient/productive commodities, not firms. If there a general consensus on this?
Basically it means decision making unit in DEA. It can be low cost firm or high profit earning firm. In your case you should focus low cost efficient exporter as DMU.
Hi Dr. Surender,
How low is low cost, equally so, how efficient should one be? From my experience, since my research was in developing country. all firms can be regarded as low cost when compared with competitive exporters from around the region. IN retrospect, they can be individually be inefficient in terms of: number of commodity they send, volume of commodity they send, number of employers they employ. In fact most stick to what they believe to be the definition of efficiency.
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