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The Determinants of Technical Efficiency of Manufacturing Firms in Ghana

Author

Listed:
  • Faruq Hasan A

    (Xavier University)

  • Yi David T.

    (Xavier University)

Abstract

This paper uses the Data Envelopment Analysis (DEA) technique to estimate the technical efficiency of firms in Ghana across six manufacturing industries during 1991-2002. We observe that manufacturing firms in Ghana are significantly less efficient than their counterparts in other countries. In addition, we find that firm characteristics such as size, age, foreign ownership, and the mix of labor and capital used during the production process have positive effects on firm efficiency. These results have implications for Ghana's import-substitution industrialization and foreign investment policies.

Suggested Citation

  • Faruq Hasan A & Yi David T., 2010. "The Determinants of Technical Efficiency of Manufacturing Firms in Ghana," Global Economy Journal, De Gruyter, vol. 10(3), pages 1-23, October.
    • Handle: RePEc:bpj:glecon:v:10:y:2010:i:3:n:7
    DOI: 10.2202/1524-5861.1646
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    Citations

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    Cited by:

    1. Haider, Salman & Danish, Mohd Shadab & Sharma, Ruchi, 2019. "Assessing energy efficiency of Indian paper industry and influencing factors: A slack-based firm-level analysis," Energy Economics, Elsevier, vol. 81(C), pages 454-464.
    2. José Contreras & Andrés Santeliz & Oscar Carvallo, 2012. "Patterns of technical efficiency in the Venezuelan manufacturing sector (2007)," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(34), pages 121-137, july-dece.
    3. Sahu Santosh Kumar & Narayanan K., 2014. "Carbon dioxide emissions from Indian manufacturing industries: role of energy and technology intensity," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 1, pages 60-73.
    4. Hasan A. Faruq, 2017. "Corruption, product complexity and African exporters," Applied Economics, Taylor & Francis Journals, vol. 49(6), pages 534-546, February.
    5. Santosh Kumar, Sahu & K., Narayanan, 2011. "Energy Intensity and Firm Performance: Do Energy Clusters Matter?," MPRA Paper 43457, University Library of Munich, Germany.
    6. 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.
    7. Dobdinga Cletus Fonchamnyo & Vukenkeng Andrew Wujung, 2016. "Innovation and Export Performance: An Empirical Insight on the Effect of Innovation on Manufacturing Firms in Cameroon," Applied Economics and Finance, Redfame publishing, vol. 3(4), pages 123-133, November.
    8. Acquaah, Moses, 2013. "Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 131-146.
    9. Opoku Adabor & Eric Fosu Oteng-Abayie & Emmanuel Buabeng, 2023. "The impact of foreign direct investment on the growth of the manufacturing sector: exploring the role of institutional quality in Ghana," SN Business & Economics, Springer, vol. 3(1), pages 1-25, January.
    10. Acquaah, Moses, 2011. "Utilization and value of social networking relationships in family and nonfamily firms in an African transition economy," European Management Journal, Elsevier, vol. 29(5), pages 347-361.
    11. Justice G. Djokoto & Korbla F. Gidiglo, 2016. "Technical Efficiency in Agribusiness: A Meta‐Analysis on Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 32(3), pages 397-415, July.
    12. Santosh K. Sahu & K. Narayanan, 2014. "CO2 Emission from Fossil Fuel Consumption and Technology Intensity," Review of Market Integration, India Development Foundation, vol. 6(3), pages 269-296, December.
    13. Santosh Kumar Sahu, 2014. "Energy Use Patterns and Firm Performance: Evidence from Indian Industries," Working Papers 2014-092, Madras School of Economics,Chennai,India.
    14. K., Narayanan & Sahu, Santosh Kumar, 2012. "CO2 Emission and Firm Heterogeneity: A Study of Metals & Metal based Industries in India," MPRA Paper 38061, University Library of Munich, Germany.
    15. Adugna Lemi & Ian Wright, 2020. "Exports, foreign ownership, and firm-level efficiency in Ethiopia and Kenya: an application of the stochastic frontier model," Empirical Economics, Springer, vol. 58(2), pages 669-698, February.

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