Productivity growth in the Norwegian ferry industry 1988 - 1996

Productivity growth in the Norwegian national roads ferry industry 1988-1996 has been studied with the DEA method. There are probably errors in official statistics regarding passengers. Some of our conclusions are therefore coached in cautions terms. There has been zero growth in productivity with regard to cost efficient production of the ferry transport supply. This is due to a growth in ferry sizes, the increased capital costs of new ferry types, and reduced frequencies. The fixed contract reform of 1990 has probably contributed to not making it negative, but this effect has diminished after a few years. There has been a productivity growth with regard to the efficient use of the ferry transport supply to produce ferry transport services. This is probably due to the heavy traffic links. Productivity in the light traffics links may have declined. There may have been a productivity decline in the cost efficient production of ferry transport services. If so, this is mainly due to the low demand links, which are also the links with the highest relative subsidy levels. The need for subsidies for the industry as a whole may therefore not have been reduced.