IDEAS home Printed from https://ideas.repec.org/p/ags/aaea10/61759.html
   My bibliography  Save this paper

A Note on Technical Efficiency, Productivity Growth and Competitiveness

Author

Listed:
  • Nivievskyi, Oleg
  • Brümmer, Bernhard
  • von Cramon-Taubadel, Stephan

Abstract

‘Productivity and efficiency growth enhances competitiveness’. Similarly formulated statements are common in the literature on the economic performance of firms, industries and nations. This conventional perception in the economic literature, originating from trade and growth theory models, however, lacks a clearly defined mathematical formulation. Earlier work by Page (1980) and Nishimizu and Page (1986) provides an elegant formalization of the relationship between the productivity growth and competitiveness measured by the Domestic Resource Costs (DRC) ratio. However, the relationship between technical efficiency and competitiveness has not been addressed in the literature. Moreover, the DRC is a biased measure of competitiveness. We propose static and dynamic decompositions of competitiveness measured by the unbiased Social Cost Benefit Ratio (SCB) indicator using a distance function approach, and demonstrate these decompositions using simulated data. These decompositions extend earlier work to formalize the relationship between technical efficiency, productivity and competitiveness, and demonstrate that competitiveness is also influenced by other factors that can override the effects of efficiency or productivity improvements.

Suggested Citation

  • Nivievskyi, Oleg & Brümmer, Bernhard & von Cramon-Taubadel, Stephan, 2010. "A Note on Technical Efficiency, Productivity Growth and Competitiveness," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61759, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61759
    DOI: 10.22004/ag.econ.61759
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/61759/files/11234%20AAEA%202010.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.61759?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Page, John M, Jr, 1980. "Technical Efficiency and Economic Performance: Some Evidence from Ghana," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 319-339, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierre J. Tremblay, 1998. "Informal Thinkering: How Is It Important?," CIRANO Working Papers 98s-13, CIRANO.
    2. Stefano Mainardi, 2018. "Fishing vessel efficiency, skipper skills and hake pricetransmission in a small island economy," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 99(3-4), pages 215-251.
    3. Trabajo, Frances Myra, 1994. "Agricultural Machinery Industry," Research Paper Series RPS 1994-04, Philippine Institute for Development Studies.
    4. Gabriela Pérez Quesada, 2017. "Technical efficiency of dairy farms in Uruguay: a stochastic production frontier analysis," Documentos de Trabajo (working papers) 0517, Department of Economics - dECON.
    5. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    6. Feijoo, Maria L. & Franco, Juan F. & Hernandez, Jose M., 2002. "Global warming and the energy efficiency of Spanish industry," Energy Economics, Elsevier, vol. 24(4), pages 405-423, July.
    7. Sonali Deraniyagala, 2001. "Adaptive technology strategies and technical efficiency: Evidence from the Sri Lankan agricultural machinery industry," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(1), pages 59-71.
    8. Alam, Ila M Semenick & Morrison, Andrew R, 2000. "Trade Reform Dynamics and Technical Efficiency: The Peruvian Experience," The World Bank Economic Review, World Bank, vol. 14(2), pages 309-330, May.
    9. John K M & Wayo Seini, 2013. "Technical Efficiency Analysis of Maize Farmers in the Eastern Region of Ghana," Journal of Social and Development Sciences, AMH International, vol. 4(2), pages 84-99.
    10. Chirwa Ephraim W., 2007. "Sources of Technical Efficiency among Smallholder Maize Farmers in Southern Malawi," Working Papers 172, African Economic Research Consortium, Research Department.
    11. Mishra, S. C., 1985. "Technological adaptation and employment in the small-scale farm machinery industry: uttar pradesh, India," ILO Working Papers 992416743402676, International Labour Organization.
    12. Omer Gokcekus & Kwabena Anyane-Ntow & T.R. Richmond, 2001. "Human Capital and Efficiency: The Role of Education and Experience in Micro-Enterprises of Ghana¡¯s Wood-Products Industry," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 26(1), pages 103-113, June.
    13. Esfahani, Hadi Salehi & Mookherjee, Dilip, 1995. "Productivity, contracting modes, and development," Journal of Development Economics, Elsevier, vol. 46(2), pages 203-231, April.
    14. repec:ilo:ilowps:241674 is not listed on IDEAS
    15. Alecos Papadopoulos, 2021. "Measuring the effect of management on production: a two-tier stochastic frontier approach," Empirical Economics, Springer, vol. 60(6), pages 3011-3041, June.
    16. Simanti Bandyopadhyay, 2010. "Effect of regulation on efficiency: evidence from Indian cement industry," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(2), pages 153-170, June.
    17. Esteban, L. & Feijoó, M. & Hernández,J.M., 2003. "Eficiencia energética y regulación de la industria española ante el cambio climático," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 21, pages 259-282, Agosto.
    18. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea10:61759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.