Assessing the efficiency of the forestry sector in EU countries

Abstract

This paper deals with a quantitative assessment of the production efficiency of the forestry sector in EU countries, which is largely neglected in the literature. Only a few studies have been conducted so far, processing data mainly in the first half of the last decade. In contrast to these studies, in this article we focus on the period between 2016 and 2020. Therefore, the main objective of this paper is to compare the efficiency of the forest sector to fill the gap. The empirical results of this study show that the leaders in this sector are Germany, Finland, and the Czech Republic. These countries are fully efficient throughout the period under review. In contrast, Bulgaria lags far behind, with an efficiency score typically around 35%. The results of the cluster analysis show that although countries have similar characteristics, their efficiency scores are not necessarily at the same level.