Non-parametric analysis of technical efficiency: factors affecting efficiency of handloom industry of Sirajganj district

Md Awal Al Kabir, Abu Rashed Osman, Shah Mohammad Mazeedul Hoque, Jeremy Brown and Shah Md Safiul Hoque ()
Additional contact information
Md Awal Al Kabir: Jahangirnagar University
Abu Rashed Osman: Sohar University
Shah Mohammad Mazeedul Hoque: Healthcare World Online
Jeremy Brown: Sohar University
Shah Md Safiul Hoque: Sohar University

SN Business & Economics, 2025, vol. 5, issue 5, 1-20

Abstract: Abstract The purpose of this study was to determine the technical efficiency of the handloom sector of Bangladesh, along with the factors affecting the technical efficiency by employing the data envelopment technique. This study used a random sample of 314 handloom entrepreneurs from the district of Sirajganj, Bangladesh. The results revealed that only 45% of handloom firms were technically efficient, implying growth potential. Moreover, bootstrap truncated regression reveals that entrepreneur-specific factors (such as education, training, gender, and working experience), as well as firm-specific factors including (advanced technology, ICT, location, labor productivity, female labor ratio, and capital-labor ratio, government support), has a significant influence on technical efficiency of the handloom microenterprises of Sirajganj. The study recommends enhancing the personal development of handloom entrepreneurs through training, education, and ICT integration. Additionally, it suggests that development organizations provide supportive measures such as education access and low-cost loans to facilitate technology adoption and modernization.

Keywords: Technical efficiency; Bootstrap truncated regression; Data envelopment analysis; Non-parametric approach; Handloom; Labor productivity; Bangladesh; Siranjganj district; Creative industry (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s43546-025-00812-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:snbeco:v:5:y:2025:i:5:d:10.1007_s43546-025-00812-z

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-025-00812-z

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().