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Measuring Productive Efficiency Incorporating Firms¡¯ Heterogeneity: An Empirical Analysis

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  • Ruhul A. Salim

    ()
    (Curtin Business School, Curtin University of Technology)

Abstract

Heterogeneity among firms is quite prevalent in industries. Using the random coefficients model, this paper aims to measure productive efficiency of firms allowing heterogeneity of firms. Firm level data from the Bangladesh food manufacturing are used for empirical estimation. The results show that there are wide variations in efficiency across firms attributable to firms¡¯ heterogeneity. Further, it shows that there is ample scope for increasing efficiency from the given resources and technology.

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File URL: http://www.jed.or.kr/full-text/31-1/31-1-8.pdf
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Bibliographic Info

Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 31 (2006)
Issue (Month): 1 (June)
Pages: 135-147

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Handle: RePEc:jed:journl:v:31:y:2006:i:1:p:135-147

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Web page: http://www.jed.or.kr/
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Related research

Keywords: Productive Efficiency; Frontier Production Function; Heterogeneity of Firms;

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Cited by:
  1. 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.

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