STOCHASTIC FRONTIER ANALYSIS OF SINGAPORE MANUFACTURING INDUSTRIES

Soo-Wei Koh, Shahidur Rahman and G. K. Randolph Tan ()
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Soo-Wei Koh: Nanyang Technological University, Singapore
Shahidur Rahman: Nanyang Technological University, Singapore
G. K. Randolph Tan: Nanyang Technological University, Singapore

The Singapore Economic Review (SER), 2004, vol. 49, issue 01, 85-103

Abstract: Previous papers on Singapore manufacturing productivity have focused almost exclusively on total factor productivity (TFP) growth rates and ignored the problem of measuring the extent of learning-by-doing. In this paper, we examine an alternative measure: the rate of technical efficiency change. Using data from 1974–1998, a translog production frontier is estimated. Following a conceptual framework popularised by Bauer (1990), productivity growth is decomposed into components arising from technical progress, technical efficiency change, a scale economies effect and an allocative inefficiency effect.

Keywords: Stochastic production frontier; Technical progress; Technical efficiency; Scale economies (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1142/S0217590804000810

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