Textile manufacturing in eight developing countries:How far does the business environment explain firms' productive inefficiency?

Mohamed Chaffai, Tidiane Kinda and Patrick Plane ()
Additional contact information
Patrick Plane: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: Production frontiers and inefficiency determinants are estimated by using stochastic models. Textile manufacturing is considered for a sample of eight developing countries encompassing about one thousand firms. We find that the most influential individual inefficiency determinants relate to in-house organization. Both access to financing and infrastructural services (e.g. power supply, modern information technologies...) also matter. Information about determinants is then regrouped into three broad categories (e.g. managerial organization, economic environment, institutions) by using principal component analyses. Results do not reject the hypothesis that managerial know-how and the quality of institutions are the most important determinants. The impact of the external economic environment is of less importance although statistically significant. Sector-based simulations are then proposed in order to assess productivity gains which would occur if firms had the opportunity to evolve in most favorable environments within the sample. Domestic and international production contexts are considered, respectively. When referring to domestic benchmarks, the contribution of in-house organization prevails as the main source of gains for the eight countries. The role of institutions proves dominant for Egypt and India when focusing on international simulations.

Keywords: textile; firms; Technical efficiency; organizational know-how; productivity; institutions; external economic environment; one step stochastic frontier method (search for similar items in EconPapers)
Date: 2011-01-10
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00554264
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-00554264/document (application/pdf)

Related works:
Working Paper: Textile manufacturing in eight developing countries:How far does the business environment explain firms' productive inefficiency? (2011)
Working Paper: Textile manufacturing in eight developing countries:How far does the business environment explain firms’ productive inefficiency? (2009)
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:hal:wpaper:halshs-00554264

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().