Size and Efficiency in African Manufacturing Firms:Evidence from Firm-Level Panel Data

Mans M. Soderbom () and Francis John Teal

Development and Comp Systems from EconWPA

Abstract: Three dimensions of the performance of firms in Ghana’s manufacturing sector are investigated in this paper: their technology and the importance of technical and allocative efficiency. We show that the diversity of factor choices in not due to a non-homothetic technology. Observable skills are not quantitatively important as determinants of productivity. Technical inefficiency is not lower in firms with foreign ownership or older firms and its dispersion across firms is similar to that found in other economies. Large firms face far higher relative labour costs than small firms. If these factor price differentials could be levelled out, substantial gains thorough improvements in allocative efficiency would be possible.

Keywords: African manufacturing; productivity; efficiency; human capital; firm size (search for similar items in EconPapers)
JEL-codes: O14 D24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ent and nep-mic
Date: 2004-09-15
Note: Type of Document - pdf; pages: 40
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http://129.3.20.41/eps/dev/papers/0409/0409010.pdf (application/pdf)

Related works:
Journal Article: Size and efficiency in African manufacturing firms: evidence from firm-level panel data (2004)
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