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Technical efficiency, market share and profitability of manufacturing firms in Côte d'Ivoire: the technology trap

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  • Leo Sleuwaegen
  • Micheline Goedhuys

Abstract

This paper investigates the sources of inefficiency of firms in Côte d'Ivoire and examines to what extent these effects translate into poor performance. A large majority of firms is technically inefficient, producing far below the maximum attainable output level. Major cost savings can also be realised through enlarging the scale of activities of firms. Efficiency gains and scale advantages translate into a better competitive position and via their impact on market share into higher profitability. However, severe growth barriers and imperfect markets keep firms from realising these gains and prevent firms from catching up in technology with respect to their larger, older and often foreign-owned competitors. Copyright 2003, Oxford University Press.

Suggested Citation

  • Leo Sleuwaegen & Micheline Goedhuys, 2003. "Technical efficiency, market share and profitability of manufacturing firms in Côte d'Ivoire: the technology trap," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(6), pages 851-866, November.
    • Handle: RePEc:oup:cambje:v:27:y:2003:i:6:p:851-866
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    Cited by:

    1. Goedhuys, Micheline & Sleuwaegen, Leo, 2013. "The Impact of International Standards Certification on the Performance of Firms in Less Developed Countries," World Development, Elsevier, vol. 47(C), pages 87-101.
    2. Tilman Altenburg & Wilfried Lütkenhorst, 2015. "Industrial Policy in Developing Countries," Books, Edward Elgar Publishing, number 14726.
    3. Halkos, George & Tzeremes, Nickolaos, 2011. "Examining the influence of access to improved water and sanitation sources on countries’ economic efficiency," MPRA Paper 30099, University Library of Munich, Germany.
    4. Micheline Goedhuys & Leo Sleuwaegen, 2010. "High-growth entrepreneurial firms in Africa: a quantile regression approach," Small Business Economics, Springer, vol. 34(1), pages 31-51, January.
    5. Adom, Philip Kofi & Amuakwa-Mensah, Franklin & Akorli, Charity Dzifa, 2023. "Energy efficiency as a sustainability concern in Africa and financial development: How much bias is involved?," Energy Economics, Elsevier, vol. 120(C).
    6. Goedhuys, Micheline, 2005. "Learning, Product Innovation and Firm Heterogeneity in Tanzania," UNU-INTECH Discussion Paper Series 2005-07, United Nations University - INTECH.
    7. Thomas Eekhout & Jean‐Philippe Berrou & François Combarnous, 2023. "Entrepreneurs' mobile phone appropriation and technical efficiency of informal firms in Dakar (Senegal)," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1429-1455, August.

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