Published 2012
“…Basically, the railroad network is a national asset that could be used to reduce the costs of transportation.The paper has two aims which the first is to describe the efficiency improvements that the railroad industry itself has made.The second is to describe the role that rail network could play in a more efficient overall national transportation system.The paper uses a secondary data or quantitative grounded theory research methods to investigate the efficiency of Malaysia’s
railways since quantitative way are more naturalistic.Author found that there was substantial inefficiency in the industry with no sign of reduction over time.Author’s main conclusion is that principal agent problems were pervasive in
railway management.Research results suggest that private ownership in the
railway industry
can promote efficiency and should be supported by competition for franchises and price-
capping regulation as well.There are two formal economic aspects of efficiency.Productive efficiency occurs when an economy cannot produce more of one good or service without producing less of another.It generally occurs when firms produce at minimum average total cost.Allocate efficiency occurs when the economy cannot raise one consumer’s satisfaction without lowering another’s.It occurs when price signals to consumers are based on marginal costs. …”
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