Export orientation and technical efficiency: clothing firms in China

Vincent Mok, Godfrey Yeung, Zhaozhou Han and Zongzhang Li
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Vincent Mok: School of Accounting and Finance, Hong Kong Polytechnic University, Hung Hom, Hong Kong, Postal: School of Accounting and Finance, Hong Kong Polytechnic University, Hung Hom, Hong Kong
Godfrey Yeung: Department of Geography, National University of Singapore, Singapore, Postal: Department of Geography, National University of Singapore, Singapore
Zhaozhou Han: Department of Statistics, Jinan University, Guangzhou, China, Postal: Department of Statistics, Jinan University, Guangzhou, China
Zongzhang Li: School of Economics and Management, South China Agricultural University, Guangzhou, China, Postal: School of Economics and Management, South China Agricultural University, Guangzhou, China

Managerial and Decision Economics, 2010, vol. 31, issue 7, 453-463

Abstract: Based on 287 of the largest clothing manufacturing firms in southern China in terms of output value, we employed data envelopment analysis to estimate the technical efficiency of the sample firms. A regression analysis was conducted to examine the effects of export orientation on technical efficiency. Our results suggest a U-shaped relationship between export ratio and technical efficiency. The specific nature of the industry in Guangdong province can explain that clothing firms with a high degree of sales in the domestic market or with a high level of export orientation experience a higher level of technical efficiency than those firms trying to conquer both the local and the overseas markets. Copyright © 2010 John Wiley & Sons, Ltd.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:31:y:2010:i:7:p:453-463

DOI: 10.1002/mde.1500

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