Economic Efficiency of Forest Enterprises—Empirical Study Based on Data Envelopment Analysis

Countries are forced to develop bio-based economic strategies to promote efficient use of renewable natural resources. The transition towards a sustainable forest bio-based economy is associated with resource efficiency optimization, adoption of innovative bio-based approaches in terms of technological improvements and cost effectiveness, and an opportunity to reach multiple societal challenges. This paper is focused on a comparative analysis of the forestry sector in the Republic of Bulgaria and the Slovak Republic by estimating the economic efficiency of four Bulgarian state-owned forest enterprises and four Slovak forest enterprises. The evaluation of economic efficiency was carried out using selected indicators of the studied enterprises over a period of five years. A data envelopment analysis (DEA) approach was used as a non-parametric linear technique for measuring the relative efficiency of a set of production decision-making units (DMUs). The Malmquist productivity index (MPI) was used to assess the pure efficiency changes (PEC) and technological changes (TCs) of the studied forest enterprises. Data for 2014–2018 were processed. The results obtained for the economic efficiency study outlined the major factors affecting the differences in efficiency scores. The long-term sustainability and increased economic efficiency of forest enterprises in both countries can be achieved by improvements in forest management and investments in research and development activities.