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Technical Efficiency in Irish Manufacturing Industry, 1991-1999

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Ali Ugur

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Abstract

This paper measures the technical efficiency levels in the Electrical and Optical Equipment industry in Irish manufacturing sector and examines the factors that could affect these levels utilising a stochastic production frontier approach over the period 1991-99 using firm-level panel data. Using the model outlined by Battese and Coelli (1995) we find that investment intensity and labour quality play an important role in explaining technical inefficiency levels in all sub-sectors of the Electrical and Optical Equipment industry. We found no significant relationship between export intensity and the technial inefficiency levels of inidividual firms in all but one sector, namely Television and Radio recievers industry.

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Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number 20044.

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Date of creation: 2004
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Handle: RePEc:tcd:tcduee:20044

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  1. 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. [Downloadable!] (restricted)
  2. Battese, George E. & Corra, Greg. S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December. [Downloadable!]
  3. Sidhu, Surjit S, 1974. "Relative Efficiency in Wheat Production in the Indian Punjab," American Economic Review, American Economic Association, vol. 64(4), pages 742-51, September. [Downloadable!] (restricted)
  4. Arunava Bhattacharyya & Elliott Parker & Kambiz Raffiee, 1994. "An Examination of the Effect of Ownership on the Relative Efficiency of Public and Private Water Utilities," Land Economics, University of Wisconsin Press, vol. 70(2), pages 197-209. [Downloadable!] (restricted)
  5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  6. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July. [Downloadable!] (restricted)
  7. Hill, Hal & Kalirajan, K P, 1993. "Small Enterprise and Firm-Level Technical Efficiency in the Indonesian Garment Industry," Applied Economics, Taylor and Francis Journals, vol. 25(9), pages 1137-44, September.
  8. Schmidt, Peter, 1976. "On the Statistical Estimation of Parametric Frontier Production Functions," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 238-39, May. [Downloadable!] (restricted)
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