Firm Size and Efficiency in the South African Motor Vehicle Industry

Lila Truett and Dale Truett
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Lila Truett: University of Texas at San Antonio
Dale Truett: University of Texas at San Antonio

No 21, Working Papers from College of Business, University of Texas at San Antonio

Abstract: This study examines the cost performance of the South African motor vehicle industry, using data categorized by output level of the firms. The results are consistent with statistically significant economies of scale at the lowest output levels and a cost inefficiency averaging about seven to nine percent. The findings also suggest that, all else equal, the smallest firms and the largest firms have lower unit costs than mid-size firms.

Keywords: Skilled-unskilled wage inequality; Unemployment; International factor movement (search for similar items in EconPapers)
JEL-codes: D2 L6 O10 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2007-02-07
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