To export or not to export? The link between the exporter status of a firmand its technical efficiency in Russia’s manufacturing sector

2016 ◽  
pp. 123-146 ◽  
Author(s):  
N. Krasnopeeva ◽  
E. Nazrullaeva ◽  
A. Peresetsky ◽  
E. Shchetinin
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Marginal Effect ◽  
Frontier Analysis ◽  
Exporting Firms ◽  
Status Effect ◽  
The Relationship ◽  
Generally True

Is it generally true that being an exporter for a firm is associated with a higher productivity? We study the relationship between firms’ export status and their technical efficiency in Russian manufacturing sector in 2004-2013 using the data from the Bureau van Dijk database “Ruslana”. To estimate the exporter status effect we apply two methods, both based on the stochastic frontier analysis. The first approach estimates the effect as the marginal effect of the exporter status on technical efficiency. The second approach is based on the propensity score matching of exporting firms with nonexporting firms. We obtain robust results which suggest that the relationship between the exporter status and technical efficiency is positive. In both cases the exporter status’ effect is up to 0.03 (3 p. p.).

scholarly journals Market Structure Conduct Performance Hypothesis Revisited Using Stochastic Frontier Efficiency Analysis

2012 ◽  
Vol 48 (3) ◽  
Author(s):  
Saleem Shaik ◽  
Albert J. Allen ◽  
Seanicaa Edwards ◽  
James Harris
Keyword(s):  
Market Structure ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficiency Measure ◽  
Frontier Analysis ◽  
Input Variables ◽  
And Performance ◽  
Frontier Efficiency ◽  
The Relationship

Stochastic frontier analysis, which is used to estimate technical efficiency, is extended to examine the market structure, conduct and performance hypothesis for the U.S. trucking industry. The technical efficiency measure takes into account not only the relationship between inputs used in the production of output, but it also examines the importance of market structure conduct factors to the performance of the firm. An empirical application to U.S. trucking carriers over the period 1994-2003 is examined. Results reveal that average haul, average load, debt-to-equity and market concentration significantly affected technical efficiency. Capital, fixed and variable input variables were significant in the production function equation.

Stochastic Frontier Analysis and Measurement of Productivity and Technical Efficiency of Indian Manufacturing Sector

2017 ◽  
Vol 5 (1) ◽  
pp. 52-69
Author(s):  
Manoj Kumar
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Value Added ◽  
Frontier Analysis ◽  
Use Of Resources ◽  
Plant Level ◽  
Indian Manufacturing Sector ◽  
Factor Inputs

It is generally believed the structural reforms that usher in competition and force companies to become more efficient were introduced later in India following the macroeconomic crisis in 1991. However, whether or not the post-1991 growth is an outcome of more efficient use of resources or greater use of factor inputs, especially capital, remains an open empirical question. In this article the author uses plant-level data from 1990 and 2015 to address this question. The results indicate that while there was an increase in the productivity of factor inputs during the 1990s, most of the growth in value added is explained by growth in the use of factor inputs. The author also finds that median technical efficiency declined in all but one of the industries between the two years, and change in technical efficiency explains a very small proportion in the change in gross value added.

scholarly journals Does foreign investment improve technical efficiency of manufacturing: Evidence from the Republic of Serbia

Industrija ◽  
2021 ◽  
Vol 49 (2) ◽  
pp. 43-55
Author(s):  
Ivan Nikolić
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Manufacturing Sector ◽  
Stochastic Frontier ◽  
Motor Vehicles ◽  
Random Effects Model ◽  
Frontier Analysis ◽  
Beneficial Impact ◽  
The Republic ◽  
High Share

This paper offers significant evidence for the presence of a beneficial impact of foreign direct investment on technical efficiency based on a balanced panel data on a sample of 92 manufacturing groups over the period 2010-2019. Throughout this period Serbia lost 28% of the potential output of the manufacturing sector due to technical inefficiency. The finding is directly supported by the results at the level of the observed groups. Thus, the greatest increase in technical efficiency is in branches with a high share of foreign ownership, such as: production of motor vehicles, production of chemicals, and production of wire and cable equipment. The methodology is based on stochastic frontier analysis - within that, 'true' random effects model. The paper contributes to a better understanding of the possible consequences of foreign-invested enterprises on the domestic economy and, in particular, the performance of local businesses. As a result, it is helpful to policymakers in developing counties, where FDI is thought to have technological spillovers on native businesses.

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals Technical Efficiency among Pepper Farmers in Sarawak, Malaysia: A Stochastic Frontier Analysis

2020 ◽  
Vol 10 (3) ◽  
pp. 729-739
Author(s):  
Anita Rosli ◽  
Alias Radam ◽  
Khalid Abdul Rahim ◽  
Amin Mahir Abdullah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Agricultural Practices ◽  
Piper Nigrum ◽  
Maximum Output ◽  
Full Time ◽  
Frontier Analysis ◽  
One Step ◽  
The Mean

This study aimed to estimate the technical efficiency among pepper (Piper nigrum. L) farmers in Sarawak, Malaysia, using Stochastic Frontier Analysis (SFA). SFA involves a one-step process that can estimate technical inefficacy factors simultaneously with the production frontier. 678 pepper farmers were involved in this study, and the data were collected from 2012 to 2013. The mean score for technical efficiency was 0.518, indicating that pepper farmers were not efficient. However, the inefficiency model showed that education level, membership in farmers’ association, full-time as a pepper farmer, attending courses and visiting sample farms were factors that significantly improved inefficiency. The major problem of pepper farming in Sarawak is poor agricultural practices where farmers do not fully utilize the available agricultural inputs to produce maximum output. Based on the findings, farmers must improve their knowledge and skills in pepper farming through agronomic education.

scholarly journals Efisiensi belanja administrasi pemerintah Kota Palembang: Pendekatan Stochastic Frontier Analysis

2019 ◽  
Vol 15 (2) ◽  
pp. 85-91
Author(s):  
Ririn Puji Astuti ◽  
M. Syirod Saleh ◽  
Muhammad Subardin
Keyword(s):  
Stochastic Frontier Analysis ◽  
Capital Expenditure ◽  
Stochastic Frontier ◽  
Secondary Data ◽  
Regional Government ◽  
Frontier Analysis ◽  
Local Revenue ◽  
Relationship Of ◽  
The Relationship ◽  
The City

This study aims to find out the efficiency of the administration of Palembang City, 2002 – 2016 period in building the area with and components that caused whether or not administrative expenditure of an area was efficient. This study uses data secondary data that is realization data of administrative expenditure, average employe’s expenditure, capital expenditure and local revenue. This data was tested by stochastic frontier analysis (SFA). The results of estimation from the stochastic frontier analysis (SFA) found that the administrative expenditure of the city of Palembang was inefficiency. The average variable of employee expenditure has a negative related and has a significant effect to administration costs in Palembang City. The relationship of variable capital expenditure with the administration costs of the regional government in the city of Palembang has a positive and significant effect. And the Local Revenue variables have a positive and significant effect to administration costs in Palembang City.

scholarly journals The trends in efficiency of Lithuanian dairy farms: a semiparametric approach

2015 ◽  
Vol 37 (2) ◽  
pp. 167-178 ◽  
Author(s):  
Tomas Baležentis ◽  
Tianxiang Li ◽  
Alvydas Baležentis
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
Random Coefficients ◽  
Family Farms ◽  
Frontier Analysis ◽  
Semiparametric Approach ◽  
Farm Accountancy Data Network ◽  
Development Paths

This study aims at analysing the trends in efficiency of Lithuanian dairy farms and thus identifying the prospective development paths. The semiparametric approach based on nonparametric regression and Stochastic Frontier Analysis is applied for the analysis. The research relies on Farm Accountancy Data Network and covers family farms. The period of 2004–2011 is considered. In order to identify the underlying trends in dairy farming, we focus on such features as technical efficiency, partial elasticities, and elasticity of scale. The semiparametric approach yielded rather high efficiencies. Specifically, the average technical efficiency of 89% was observed. A decline in technical efficiency during 2004–2011 is present for both point estimates and associated bounds of the confidence interval. Analysis of the elasticity of scale implies that most of the farms could still increase their scale of operation. The obtained results were confirmed by a parametric random coefficients model.

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