Analysis of Total Factor Productivity of Power and Energy Sector in Bangladesh: A Study on CSE Listed Companies

Abstract

Data envelopment analysis (DEA) is one of the most prominent productivity analysis model which measures overall performance of a firm based on specified input and output factors considering time series data. Power and energy sector of Bangladesh are controlled by both state owned and institutional ownership. The aim of the study is to assess Productivity performance of privately owned power and energy sector of Bangladesh by considering salaries and operating expenditure as input factors and revenue profit and total asset are output factors of eleven companies listed under Chittagong Stock Exchange (CSE) of Bangladesh. Malmquist output oriented productivity analysis was used to examine six years’ time series data, finds that total factor productivity of power and energy sector under private ownership is increased by 2.5% indicating firms overall efficiency is increased within sample period of time. The limitation of study is that long term time series data and state owned Organization are not considered in this study. Further research may be carried out considering both state owned and privatized institutions as well as more input-output variables may be used to examine the effectiveness of this sector on the whole economy.