MEASURING THE EFFICIENCY OF PARTICIPATING COUNTRIES IN NATO-LED MISSION IN AFGHANISTAN, ISAF: NON-PARAMETRIC APPROACH

Abstract

The aim of this paper is to measure the relative efficiency of the participating countries in the ISAF mission in a period of three years (2007-2009) by using the non-parametric approach Data Envelopment Analysis (DEA). A key role in DEA analysis is the selection of inputs and outputs, and in our empirical research two inputs are selected: the total population of each participating country and the GDP per capita of the participating countries, and as output the number of soldiers (troops) of each participating country per rotation is selected. The sample consists of 36 participating countries, i.e., Decision Making Units (DMUs). According to the obtained results it is found that 5 countries (Albania, Estonia, Macedonia, United Kingdom, and the United States) are relative efficient in the whole observed period, while Austria is identified as the least efficient country. In addition, it is shown how relative inefficient countries may improve their efficiency and become relative efficient.