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Efficiency Variation of Manufacturing Firms: A Case Study of Seafood Processing Firms in Bangladesh

Author

Listed:
  • Md. Shakil Ahmed

    (Research and Evaluation Division, BRAC, Bangladesh)

  • M. Daud Ahmed

    (Faculty of Business, Manukau Institute of Technology, New Zealand)

Abstract

Manufacturing firms in developing countries experience difficulties to deploy total capacity and realize the full potential. This research uses four years? primary data collected from the seafood industry in Bangladesh and analyzes that using stochastic frontier approach and presents an estimation model of the technical efficiency of the seafood processing firms in Bangladesh. It reveals that the industry runs on an average of 80% technical efficiency and has the potentials to increase productivity efficiency. The research also finds that the firms? age and size are the main sources of inefficiency. Smaller and newer firms are comparatively efficient than the larger and older ones. In order to improve production efficiency, large firms need to devise strategies for regular modernization through technological adaptation and modularization of the production units.

Suggested Citation

  • Md. Shakil Ahmed & M. Daud Ahmed, 2013. "Efficiency Variation of Manufacturing Firms: A Case Study of Seafood Processing Firms in Bangladesh," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 45-56, May.
    • Handle: RePEc:bap:journl:130204
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    References listed on IDEAS

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    Cited by:

    1. Yordanos Gebremeskel & Bupe Simuchimba & Chonzi Mulenga, 2019. "Skills Gap, Innovation, and Firms Performance in Zambia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(8), pages 129-129, August.
    2. Mohammad Kamal Hossain & Md Abdus Salam & Afsana Nahid, 2022. "Measuring the technical efficiency of the listed IT companies: Evidence from Bangladesh," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 74-85, September.
    3. Anastasia R. Njiku & Ganka D. Nyamsogoro, 2018. "Determinants of Technical Efficiency of Small Scale Sunflower Oil Processing Firms in Tanzania: One Stage Stochastic Frontier Approach," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(1), pages 79-86.

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    More about this item

    Keywords

    Stochastic production function; Technical efficiency; Seafood processing firms; Production efficiency factors;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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