scholarly journals Export guarantees and firm performance in the context of corporate governance

2021 ◽  
Vol 18 (3) ◽  
pp. 136-148
Author(s):  
Kashika Arora ◽  
Areej Aftab Siddiqui
Keyword(s):  
Technical Efficiency ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Stochastic Frontier ◽  
World Market ◽  
Insurance Premium ◽  
Firm Level ◽  
Level Data ◽  
Medium Enterprises ◽  
Frontier Production Function

Micro, small and medium enterprises (MSMEs) the forerunners of the Indian economy equipped with the greatest potential of growth and employment opportunities are the focus of this paper. By examining firm-level data for years 2007-2008 and 2017-2018, this paper captures the simultaneous expenditure on insurance premium and export earnings on the technical efficiency of firms. On applying stochastic frontier production function, results reveal that Indian MSMEs although being labour intensive have high average technical efficiency in the two comparative years. Results also indicate that factors such as firm size, age, ownership, technological imports both embodied and disembodied, expenditure on R&D, and export guarantees contribute to the technical efficiency of MSMEs. The top 25 percent of efficient MSMEs in 2017-2018 rely more on exports, have higher forex earnings with higher expenditure on marketing & advertising, and expenditure on export guarantees. This thus warrants a further improvement in technical efficiency through access to financial services, skilled labour, training of labour, enhancing and attracting foreign investment for operational collaborations, and incentives for easier and risk-free penetration in the world market

Technical efficiency and its determinants in the Indian textile garments industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulla ◽  
Shiv Kumar
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Textile Industry ◽  
Small And Medium Enterprises ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Value Chains ◽  
Small Scale ◽  
Content Type ◽  
Medium Enterprises

Purpose This paper aims to examine technical efficiency and its determinants in Indian textile garments industry in post-agreement on textiles and clothing regime and evaluate the technical efficiency among micro, small and medium enterprises (MSMEs) firms. Design/methodology/approach This study uses unbalanced panel data for the period 2005–2010 to 2015–2016. The stochastic frontier function is used to estimate technical efficiency and its determinants. Findings The results show that the overall ecosystem of textile garments’ value chains could be improved to enhance the technical efficiency thereof. The result also reveals that small-scale firms have the highest technical efficiency scores, and medium-scale firms have the least technical efficiency score among all the categories of MSMEs. Research limitations/implications The textile garments industry needs to define its innovation strategies, as these strategies lead to different results that can be achieved only through the management of resources dedicated to the generation and implementation of innovations. Practical implications This study has shown that to offset India’s cost disadvantage in the international markets, there is a need to develop an ecosystem of textile manufacturing and value chains, eliminate the inverted duty structure (where inputs are taxed at a higher rate than the final product) and switch over from shuttle looms toward shuttle-less looms. This would unleash the potential of textile and garments industry and make it globally competitive and technically efficient. Further, there will be an alignment with the ease of doing business with an appropriate mix of policy, technology, institution, infrastructure, information and services. Originality/value Using frontier production function takes stochastic context into account for the dynamic character of technical efficiency and its components. Most of the past studies have assessed technical efficiency at the aggregate level using three-digit National Industrial Classification (NIC) or four-digit NIC code. An analysis at higher levels of aggregation masks the variation in technical efficiency. This study used five-digit NIC data to measure the firm-specific technical efficiency of the textile industry. According to the authors’ knowledge, this study is the first of its kind in the Indian textile industry using stochastic frontier approach and panel data. Further, it also looks at the contribution of different determinants in technical efficiency to the firms.

scholarly journals Measuring Technical Efficiency of Onion (Allium cepa L.) Farms in Bangladesh

2012 ◽  
Vol 37 (1) ◽  
pp. 171-178 ◽  
Author(s):  
MA Baree
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Mean Value ◽  
Farm Size ◽  
Stochastic Frontier Production Function ◽  
Level Data ◽  
Allium Cepa L ◽  
Additional Costs ◽  
Experience Education ◽  
Frontier Production Function

An attempt was made to determine the overall farm-specific technical efficiency or inefficiency of onion farms of Bangladesh. Farm-level data were used for the estimation of the parameters of Cobb-Douglas stochastic frontier production function. The model for technical inefficiency effects in the stochastic frontier included age, experience, education, and farm size. The elasticity of output with respect to land, labour, and capital cost was estimated to be positive values of 0.3026, 0.0718, and 0.0442, respectively, and also significant. With respect to seed and irrigation, it was found to be insignificant with negative values of 0.0045 and 0.0007. It indicates that per hectare yield of onion decreases if the amount of seed and irrigation hour increase. The coefficients of age, experience, and farm size were significant with expected negative signs, which means that the inefficiency effects in onion production decreases with increase in age, experience, and farm size. The technical efficiency of onion farms varied from 58% to 99% with mean value of 83%. It denotes that there is a scope to increase output per hectare of onion farm by 17% through the efficient use of production  technology without incurring any additional costs. DOI: http://dx.doi.org/10.3329/bjar.v37i1.11191 Bangladesh J. Agril. Res. 37(1): 171-178, March 2012  

scholarly journals Does Foreign Presence Influence the Level of Firm Technical Efficiency? Evidence from Africa

2021 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Anthony Orji ◽  
Jonathan E. Ogbuabor ◽  
Gabriel Chiangi Aza ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Foreign Direct Investment ◽  
West Africa ◽  
Technical Efficiency ◽  
Direct Investment ◽  
Positive Impact ◽  
Stochastic Frontier ◽  
Firm Level ◽  
Frontier Production Function ◽  
World Bank Enterprise Survey ◽  
The Impact

Abstract This study investigates the impact of foreign direct investment on the level of firm technical efficiency in West Africa. Firms from Nigeria, Ghana, Sierra Leone and the Gambia were sampled due to the fact that they used to belong to the British Empire. The data, sourced from the World Bank enterprise survey, covers the period from 2006 to 2018, with the sampled countries having data for different years. A time varying stochastic frontier production function for panel was developed for this enquiry. The findings of the study show that foreign direct investment has a significant and positive impact on both technical efficiency and productivity of firms in West Africa. Controlling for other effects, international trade and firm size both have positive and significant effects on firm level technical efficiency. Therefore, policies should be aimed at encouraging more inflows and maintenance of the stock of foreign direct investment to avert divestments. This includes, but is not limited to, ensuring sociopolitical stability and introducing policies that would remove bureaucratic bottlenecks from the path of direct investment inflow and simplify the process of doing business in these countries.

Market power, ownership and technical efficiency

2019 ◽  
Vol 12 (2) ◽  
pp. 275-294 ◽  
Author(s):  
Jiawu Dai ◽  
Xun Li
Keyword(s):  
Market Power ◽  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Firm Level ◽  
Content Type ◽  
New Model ◽  
Stochastic Frontier Production Function ◽  
Stochastic Frontier Cost Function ◽  
Frontier Production Function ◽  
Oligopsony Power

Purpose The purpose of this paper is to estimate oligopsony power in the upstream factor market and oligopoly power in the downstream product market. On this basis, the paper intends to examine the effects of both oligopsony and oligopoly power as well as ownership on technical efficiency which were rarely discussed in previous studies. Design/methodology/approach First, based on the stochastic frontier production function, the paper constructs a new model that is capable to estimate oligopsony power for each observation. Second, the paper employs the popular dual stochastic frontier cost function to estimate marginal cost as well as oligopoly power. Then, the system GMM method with different sets of instrumental variables is applied to test the effects of the two-sided market power and ownership on technical efficiency. Findings Using unbalanced panel data at the firm level, the paper demonstrates that oligopsony power is significantly variant across different sectors. The most notable point is that oligopsony power in China’s soya and peanut oil industries is negative, while that in pork and beef industries is much stronger than those in other industries. In addition, state-owned enterprises (SOEs) are found to be less technically efficient in most of the selected industries, while SOEs with higher oligopsony power tend to be more technically efficient than non-state-owned enterprises(NSOEs), which is consistent with the quiet life hypothesis. Originality/value This paper sheds light mainly on three aspects. First, it proposes a new model to estimate oligopsony power for each single firm. Second, it tests the effect of oligopsony power on technical efficiency. Third, it distinguishes the differential effect of oligopsony power on technical efficiency between SOEs and NSOEs.

scholarly journals Firm-Level Data and Monetary Policy

2019 ◽  
Vol 2019 (239) ◽  
Author(s):  
Lahcen Bounader ◽  
Mohamed Doukali
Keyword(s):  
Monetary Policy ◽  
Small And Medium Enterprises ◽  
Balance Sheet ◽  
Firm Level ◽  
Middle Income ◽  
Financing Decisions ◽  
Balance Sheet Channel ◽  
Level Data ◽  
Firm Level Data ◽  
Medium Enterprises

We test the existence of the balance sheet channel of monetary policy in a middle-income country. Firm-level data scarcity and quality, in such a context, make the identification of this channel a steep challenge. To circumvent this challenge, we use panel instrumental variables estimation with measurement error to analyze the financial statements of 58 500 Moroccan firms over the period 2010-2016. Our analysis confirms the existence of this channel. It shows that monetary policy has a significant impact on small and medium enterprises’ access to banks’ financing, and that firm-specific variables are key determinants of firms’ financing decisions.

ECONOMIC IMPACT ASSESSMENT OF PUBLIC–PRIVATE MATCHING FUND PROGRAMS USING FIRM-LEVEL DATA

2015 ◽  
Vol 60 (04) ◽  
pp. 1550060 ◽  
Author(s):  
YOUNGKYU KIM ◽  
INHA OH ◽  
JEONG-DONG LEE
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Private Investment ◽  
External Financing ◽  
Firm Level ◽  
Economic Impact Assessment ◽  
Level Data ◽  
Fixed Assets ◽  
Medium Enterprises

In the intermediate goods industry, largely made up of small and medium enterprises (SMEs), a government can use a matching fund to execute policies that, for example, provide funds to promote and support firms' innovative activities. This study performs an empirical analysis to investigate the additional effects when a government uses a matching fund in this way and, in particular, to analyze the growth of firms. Methodologically, to deal with the selectivity issue, we adopt a propensity score matching (PSM) estimator. We also investigate the performance of the matching fund according to changes in private shares. Our findings show that supported firms invested larger amounts in R&D and procured external financing through an overall improvement in their level of reliability. However, the results also show that this was not connected to further improvements in business performance. Moreover, although our results show some positive impact on assets and R&D expenditure from private investment in the matching fund, the relationship between sales and fixed assets was non-significant.

scholarly journals Technical Efficiency of Manufacturing Enterprises in Libya: A Stochastic Frontier Analysis

2013 ◽  
Vol 5 (2) ◽  
pp. 528-535
Author(s):  
Hodud Essmui ◽  
Madeline Berma ◽  
Faridah Bt. Shahadan ◽  
Shamshubarida Bt. Ramlee
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Frontier Analysis ◽  
Manufacturing Enterprises ◽  
Stochastic Frontier Production Function ◽  
Econometric Approach ◽  
Frontier Production Function

This paper examines the performance of manufacturing firms in Libya. Specifically, it evaluates firm level technical efficiency. The paper uses an econometric approach based on a stochastic frontier production function to analyze 207 firms from survey conducted from March to May 2013. The results from estimations reveal that technical efficiencies of Libyan manufacturing firms ranging from 37.77 percent to 95.27 percent, with an average of 71.27 percent. While, the percent of firms that considered technically efficient is only 17.87 percent of the total firms.

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals ESTIMASI FUNGSI PRODUKSI DAN EFISIENSI ALOKASI SUMBERDAYA PETANI KEDELAI DI LOMBOK BARAT

2006 ◽  
Vol 3 (1) ◽  
pp. 145-148 ◽  
Author(s):  
Nurhayatin Nufus
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Farm Management ◽  
Management Level ◽  
Stochastic Frontier Production Function ◽  
Stochastic Production ◽  
Frontier Production Function ◽  
Land Size

This research  aims  to analyses  factors  influence  on production  and  resources  allocation  of soybeans  by farmer  at  West Lombok.  Production  function  was estimated  from survey data and technical  efficiency  was used to indicate  farm management  level  through maximum  likelihood,  which  was transformed  into frontier stochastic  production  function.  The land  size,  fertilizer  (urea and  TSP), labor  and pesticide  influence  the production  of soybean  at site.  The technical efficciency  level of Soybean fann was 95,6 percent   The  usage of TSP and pesticide reached allocative efficiency while urea and seeds were al/ocative efficiency yet Key words:  technical  effICiency, allocative  effICiency, and stochastic  frontier  production  function.

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