Technical Efficiencies of Some Manufacturing Industries of Bangladesh: An Application of the Stochastic Frontier Production Function Approach

Mohammad Jaforullah
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Mohammad Jaforullah: Lecturer in Economics, University of Otago, Dunedin, New Zealand

Bangladesh Development Studies, 1996, vol. 24, issue 1-2, 131-149

Abstract: This paper reports the technical efficiencies of 19 four-digit manufacturing industries of Bangladesh. These were estimated using the stochastic frontier production function approach and regional data. Two variants of the Cobb-Douglas production function, homogeneous and constant returns-to-scale, were used to represent the production frontiers of the industries. Three alternative distributions were used to model the random inefficiency term: half-normal, truncated normal and exponential. It was found that there is considerable scope for the industries to increase their technical efficiencies since their efficiencies range from only 29.2 per cent to 86.8 per cent.

Keywords: Industrial efficiency; Production efficiency; Food processing industries; Furniture industry; Sugar industry; Industrial machinery; Milling industry; Production estimates (search for similar items in EconPapers)
JEL-codes: A12 (search for similar items in EconPapers)
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:ris:badest:0354

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