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Efficiency Variation of Manufacturing Firms: A Case Study of Seafood Processing Firms in Bangladesh

Author

Listed:
  • Md. Shakil Ahmed

    () (Research and Evaluation Division, BRAC, Bangladesh)

  • M. Daud Ahmed

    () (Faculty of Business, Manukau Institute of Technology, New Zealand)

Abstract

Manufacturing firms in developing countries experience difficulties to deploy total capacity and realize the full potential. This research uses four years? primary data collected from the seafood industry in Bangladesh and analyzes that using stochastic frontier approach and presents an estimation model of the technical efficiency of the seafood processing firms in Bangladesh. It reveals that the industry runs on an average of 80% technical efficiency and has the potentials to increase productivity efficiency. The research also finds that the firms? age and size are the main sources of inefficiency. Smaller and newer firms are comparatively efficient than the larger and older ones. In order to improve production efficiency, large firms need to devise strategies for regular modernization through technological adaptation and modularization of the production units.

Suggested Citation

  • Md. Shakil Ahmed & M. Daud Ahmed, 2013. "Efficiency Variation of Manufacturing Firms: A Case Study of Seafood Processing Firms in Bangladesh," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 45-56, May.
  • Handle: RePEc:bap:journl:130204
    as

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    File URL: http://www.bapress.ca/ref/v3-2/1923-7529-2013-02-45-12.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Stochastic production function; Technical efficiency; Seafood processing firms; Production efficiency factors;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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