Research on Technology Innovation Efficiency of Regional Equipment Manufacturing Industry Based on Stochastic Frontier Analysis Method

The manufacturing level directly manifests the comprehensive strength of a country or region. Production efficiency provides an important metric of the competitiveness of the manufacturing industry. Based on the data of China’s industrial enterprises of 1999–2011, this paper estimates the production efficiency of manufacturing in Central China’s Hubei Province through stochastic frontier analysis (SFA) and thus characterizes the differences between prefectures of Hubei in manufacturing competitiveness. The results show that, on the prefecture level, Xianning and Wuhan saw a decline in manufacturing competitiveness, while Xiangfan and Xiaogan witnessed an increase in manufacturing competitiveness. To enhance local manufacturing competitiveness and make Hubei the forerunner and cornerstone of Central China, different prefectures should adopt different industrial promotion policies, pay attention to cultivating the technological innovation capabilities of enterprises, and strengthen the integration of production, education, and research.

Download Full-text

Technical Efficiency (TE) in Malaysia Electric and Electronic Manufacturing Industry: A Stochastic Frontier Analysis (SFA) Approach

11th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES - Global Conference on Business and Social Sciences Proceeding ◽

10.35609/gcbssproceeding.2021.12(98) ◽

2021 ◽

Vol 12 (1) ◽

pp. 98-98

Author(s):

Norayati Hashim ◽

Mohd Fahmy Abdullah

Keyword(s):

Technical Efficiency ◽

Manufacturing Industry ◽

Stochastic Frontier Analysis ◽

Developing Economies ◽

Stochastic Frontier ◽

Value Added ◽

The United States ◽

Average Growth ◽

Frontier Analysis ◽

Major Player

The Electric and Electronic (E&E) manufacturing industry is becoming more important for Malaysia economy that contributes to the Gross Domestic Product (GDP) and provide huge in job creation. Hence, real GDP grew at an average rate of 6.1% per year over 1970 to 2018 period, higher than the average growth of the advanced countries (OECD Economic Surveys: Malaysia 2019, 2019). Furthermore, Malaysia is a major player in the fast-expanding E&E market, of which major export destinations include Singapore, Hong Kong, the USA, PRC, Japan and Europe. In 2019, 37.8% of Malaysia total exports were from E&E industry, which accounted for RM372.67 billion worth of exports or 44.7 per cent of all manufacturing goods exported (MITI, 2019). However, the E&E manufacturing industry is fluctuating and was inconsistent in Malaysia (MITI, 2014). Furthermore, the external environment continued to be affected by global economic uncertainty in 2012, dampening demand for the E&E manufacturing industry exports to decrease by 2.5 percent to RM231.2 billion and had an impact on the labour market with total retrenchments increased by 35.2 percent to 7616, due mainly to higher layoffs in the manufacturing industry (MITI, 2012). This effect is due to the sovereign debt crisis in Europe, the United States (US) economic recovery was modest, dampened by both domestic and external weaknesses and the stagnant economy in Japan had an impact on the export performance. In addition that growing competition from manufacturers in developing economies such as China and ASEAN member countries, particularly in higher value-added assembly (Bank Negara Malaysia, 2012). Hence, Malaysia economic landscape year 2012 became more challenging to uncertainty affected by an increasingly competitive global environment. Keywords: Technical Efficiency, Electric and Electronics, Stochastic Frontier Analysis (SFA), Translog, Panel Data.

Download Full-text

GLOBAL SOURCING AND TECHNICAL EFFICIENCY – A FIRM-LEVEL STUDY ON THE ICT INDUSTRY IN SWEDEN

Journal of Business Economics and Management ◽

10.3846/16111699.2017.1356367 ◽

2017 ◽

Vol 18 (5) ◽

pp. 877-896 ◽

Cited By ~ 3

Author(s):

Martin ANDERSSON ◽

Trudy-Ann STONE

Keyword(s):

Technical Efficiency ◽

Manufacturing Industry ◽

Management Practices ◽

Stochastic Frontier Analysis ◽

Stochastic Frontier ◽

Efficient Production ◽

Global Sourcing ◽

Firm Level ◽

Frontier Analysis ◽

International Sourcing

We analyse the relationship between international sourcing, measured as imports of intermediate inputs, and the technical efficiency of firms in the information and communications technologies (ICT) manufacturing industry in Sweden. Using stochastic frontier analysis, we provide evidence that global sourcing improves firms’ capabilities to combine and re-combine inputs in productive ways, thereby increasing technical efficiency. We find a robust relationship between technical efficiency and international outsourcing. First, we find that firms that are deeply integrated into global sourcing networks are closer to their own production frontier. Second, firms that are engaged in international sourcing are also closer to the industry efficiency frontier. These findings are consistent with the argument that international sourcing stimulates firms’ capabilities by enabling them to identify and adopt higher quality inputs or more efficient production and management practices. These findings also suggest that the variety and extent of firms’ global sourcing networks constitute an important source of differences in efficiency levels among firms the ICT manufacturing industry.

Download Full-text

EFISIENSI TEKNIS, PERTUMBUHAN TEKNOLOGI DAN TOTAL FAKTOR PRODUKTIVITAS PADA INDUSTRI MENENGAH DAN BESAR DI INDONESIA

JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN ◽

10.29244/jekp.6.1.1-20 ◽

2018 ◽

Vol 6 (1) ◽

pp. 1-20

Author(s):

Muhammad Fazri ◽

Hermanto Siregar ◽

Nunung Nuryartono

Keyword(s):

Technical Efficiency ◽

Manufacturing Industry ◽

Stochastic Frontier Analysis ◽

Stochastic Frontier ◽

Reform Era ◽

Frontier Analysis ◽

Tfp Growth ◽

Technological Growth ◽

Before And After ◽

The Impact

Indonesia's economic growth this decade has good development. Not only growing but also more stable than before the reform era which is visible from the persistence of Indonesia at the level of positive growth during the economic crisis of 2008. Growth was good was followed by a change in the proportion of manufacturing industry in Indonesia which, if seen followed by a decrease in the production of some subsector indices industry. Total factor productivity (TFP) is one measure to look at other factors apart from the impact on production inputs such as technical efficiency and technological growth. In this study, in addition to trying to calculate TFP in some manufacturing industries subsector, in this study also wants to see the value of technical efficiency and the growth of the technology is a component of TFP calculations by the method of Stochastic Frontier Analysis (SFA). The results show that there is growing value of technical efficiency in some industries and most industries experienced relatively low growth of the technology. In the era before and after the crisis most of the industry has increased TFP growth but some industry decreased TFP growth. Keywords: SFA, Technical efficiency, Technological growth, TFP

Download Full-text

PENGUKURAN ENVIRONMENTAL TECHNICAL EFFICIENCY INDUSTRI PENGOLAHAN DI JAWA TIMUR TAHUN 2006-2009

Jurnal Ilmu Ekonomi Terapan ◽

10.20473/jiet.v1i1.1843 ◽

2016 ◽

Vol 1 (1) ◽

Author(s):

Ratih Twi Septiriana

Keyword(s):

Technical Efficiency ◽

Co2 Emission ◽

Manufacturing Industry ◽

Stochastic Frontier Analysis ◽

Stochastic Frontier ◽

Hyperbolic Distance ◽

Environmental Characteristic ◽

Frontier Analysis ◽

Desirable Output ◽

The One

CO2 emission is the greatest source of global warming that poses serious threats on environment, ecology, and socio-economic system. In the production process, CO2 is considered as undesirable output that always risesas long as desirable output is produced. Indonesia, as the one of the biggest emitter of CO2 emission, has been committing in reducing emission up to 26% for 2020. Using panel data, stochastic frontier analysis (SFA) has been used to evaluate the environmental technical efficiency of manufacturing industry in Java on 2006-2009. The translog hyperbolic distance function has been chose since this model can accommodate environmental characteristic of production technology. The empirical result shows the average environmental technical efficiency is 0,834. This study also investigates the factors that explain the level of environmental technical efficiency of firm. The results reveal that there are seven factors that significantly affecting environmental technical efficiency included: firm size, ownership status, foreign investment, type of industry, composition effect, scale effect, and technical effect. The finding of this paper indicate that environmental technical efficiency among manufacturing industry in Java still can be improved by focusing on those seven factor.

Download Full-text