Technical Efficiency and Its Determinants in the Manufacturing Sector: What We Know and What We Should Know

Sumon Bhaumik

Chapter 36 in Handbook of Production Economics, 2022, pp 1411-1432 from Springer

Abstract: Abstract There is a larges literature on technical efficiency (TE) of manufacturing sector firms in developing country contexts, much less so for developing country contexts. Most of empirical research use either data envelopment analysis (DEA) or stochastic frontier analysis (SFA) to estimate TE. Available evidence suggests that TE of firms is low in developing countries, and there is considerable inter-firm heterogeneity in TE. Firm-level TE is correlated with (or influenced by) external factors such as liberalization of trade and foreign direct investment (FDI) and overall economic liberalization, as also by internal factors such as firm size, ownership, whether or not they operate in the formal sector, and use and adoption of ICT. However, there is mixed evidence about the extent to which liberal economic policies and firm characteristics such as size and ownership are associated with higher TE. Future research should focus on the impact of the institutional environment in which firms operate and their managerial capability on firm-level TE.

Keywords: Technical efficiency; Manufacturing sector; Data envelopment analysis; Stochastic frontier analysis; Developing countries (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sprchp:978-981-10-3455-8_36

Ordering information: This item can be ordered from
http://www.springer.com/9789811034558

DOI: 10.1007/978-981-10-3455-8_36

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().