Assessing the efficiency of the Italian aquaculture firms

The study investigates the efficiency of a sample of Italian aquaculture firms according to their legal status, size, and location. An efficiency analysis was conducted for a sample of 160 units using an output-oriented Data Envelopment Analysis. The average value of the efficiency scores reveals that it should be possible to significantly increase firm performance. The most inefficient farms are cooperatives, southern farms, and the smallest farms. The weight of efficient units is as follows: 34% of the cooperatives and 26% of the limited liability companies; 26% of units located in Northern-Central regions and 34% of those placed in Southern areas; 47% of the big and 23% of the small firms. Among subgroups of units, the only significant difference in the average efficiency score is related to the firm size. The sensitivity of the results to methodological choices reveals that the variable return to scale hypothesis fits the data better than the constant returns to scale and that bootstrapping while changing the value of the scores does not change findings in terms of size, location, and legal status. Actions which remove obstacles and increase firm size are the most obvious ways to improve the efficiency and competitiveness of the sector.