The impact of port sector reforms on the productivity and efficiency of container ports in lower-middle-income countries: a Malmquist productivity index approach

Abstract Despite the extensive research on container port efficiency, the impact of port organizational reforms on productivity and efficiency in lower-middle-income countries remains underexplored, with most studies focusing on developed nations or specific regions. This study addresses this gap. It aims to analyse the productivity changes in container ports within world-wide lower-middle-income countries. The Malmquist Productivity Index, estimated using data envelopment analysis (DEA), was applied to a balanced panel of 39 container ports from 2001 to 2012 being a period that covers substantial port organisational reforms in the target population. The findings reveal an average productivity growth rate of 1.9% among the sample ports during the study period. Decomposition of the Malmquist Index shows that this growth is primarily driven by improvements in technical efficiency, with pure efficiency change emerging as the main driver. These insights are valuable for guiding strategic decision-making to enhance port competitiveness, particularly in lower-middle-income countries.