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Efficiency Performance In Malaysian Manufacturing Industries

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  • Mansor H. IBRAHIM*

Abstract

The present analysis measures and evaluates the efficiency performance of Malaysian manufacturing industries based on panel estimation methods of a stochastic frontier production function . Our findings suggest that the Malaysian manufacturing industries are relatively efficient, having the average technical efficiency levels of more than 70 per cent. Still some industries have been identified to have low levels of technical efficiency. These include Leather and Leather Products, Iron and Steel, Paper and Paper Products, NonFerrous Metals, and Food. In addition, we also find that several industries have a reduction in the efficiency levels over time. Among them are Leather and Leather Products, Paper and Paper Products, Non-Ferrous Metals, other Chemical Products, and Electrical Machinery. Accordingly, to survive the upcoming liberalized markets, adjustments to boost efficiency levels in these industries need to be made.

Suggested Citation

  • Mansor H. IBRAHIM*, 1997. "Efficiency Performance In Malaysian Manufacturing Industries," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 13(2), pages 227-243.
  • Handle: RePEc:pje:journl:article1997winiv
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    Cited by:

    1. Sangho Kim & Mazlina Shafi'i, 2009. "Factor Determinants of Total Factor Productivity Growth in Malaysian Manufacturing Industries: a decomposition analysis," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 48-65, May.
    2. Mahadevan, Renuka, 2007. "Perspiration versus inspiration: Lessons from a rapidly developing economy," Journal of Asian Economics, Elsevier, vol. 18(2), pages 331-347, April.

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