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

Author

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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.

Suggested Citation

  • Ruhul A. Salim, 2006. "Measuring Productive Efficiency Incorporating Firms¡¯ Heterogeneity: An Empirical Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 31(1), pages 135-147, June.
    • Handle: RePEc:jed:journl:v:31:y:2006:i:1:p:135-147
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    Citations

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    Cited by:

    1. Amin W. Mugera & Allen M. Featherstone, 2008. "Backyard Hog Production Efficiency: Evidence from the Philippines," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 267-287, September.
    2. 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.
    3. Sucihatiningsih Dian Wisika Prajant, 2012. "Farming efficiency and agricultural extension performance in Central Java," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(1), pages 87-95, April.

    More about this item

    Keywords

    Productive Efficiency; Frontier Production Function; Heterogeneity of Firms;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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