Determinants of Efficiency in Least Developed Countries: Further Evidence from Nepalese Manufacturing Firms
AbstractUsing a translog stochastic production frontier and maximum likelihood econometric methods, we estimate and model the determinants of firm level efficiency in the Nepalese context. Our results are broadly in line with theoretical expectations. We find that large firms are more efficient and that a higher capital intensity leads to inefficiency. There is no statistical evidence to suggest that foreign participation leads to efficiency improvements. Also, we do not observe any link between export intensity and efficiency improvement. We find that higher protection leads to inefficiency. Overall, our results suggest that an outward looking industrial strategy, which relies on less intervention and permits the development of large-scale industries, is conducive to efficiency improvement in least developed countries (LDCs) like Nepal.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Development Studies.
Volume (Year): 41 (2005)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/FJDS20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pack, Howard, 1984. "Productivity and technical choice : Applications to the textile industry," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 153-176.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Kishor Sharma & Sisira Kumara Jayasuriya & Edward Oczkowski, 1997.
"Liberalization and Productivity Growth: The Case of Manufacturing Industry in Nepal,"
1997.16, School of Economics, La Trobe University.
- Kishor Sharma & Sisira Jayasuriya & Edward Oczkowski, 2000. "Liberalization and Productivity Growth: The Case of Manufacturing Industry in Nepal," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 205-222.
- Sharma, K., 2000. "Liberalization and Structural Change: Evidence from Nepalese Manufacturing," Papers 812, Yale - Economic Growth Center.
- Dani Rodrik, 1992. "The Limits of Trade Policy Reform in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 87-105, Winter.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 250-252.
- Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics, Blackwell, vol. 24(3), pages 329-338, March.
- Nishimizu, Mieko & Robinson, Sherman, 1984. "Trade policies and productivity change in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 177-206.
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
- Mari Maté-Sánchez-Val & Antonia Madrid-Guijarro, 2011. "A spatial efficiency index proposal: an empirical application to SMEs productivity," The Annals of Regional Science, Springer, vol. 47(2), pages 353-371, October.
- Sharma, Kishor, 2006. "The political economy of civil war in Nepal," World Development, Elsevier, vol. 34(7), pages 1237-1253, July.
- Santosh Kumar, Sahu & K., Narayanan, 2011. "Energy Intensity and Firm Performance: Do Energy Clusters Matter?," MPRA Paper 43457, University Library of Munich, Germany.
- Chang, Chia-Lin & Robin, Stéphane, 2010.
"Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003),"
27913, University Library of Munich, Germany.
- Chia-Lin Chang & Stéphane Robin, 2012. "Knowledge sourcing and firm performance in an industrializing economy: the case of Taiwan (1992–2003)," Empirical Economics, Springer, vol. 42(3), pages 947-986, June.
- David T. Yi, 2010. "Determinants of fundraising efficiency of nonprofit organizations: evidence from US public charitable organizations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 465-475.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.