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Efficiency Measurement With Unbalanced Panel Data: Evidence from Tunisian Textile, Clothing and Leather Industries

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  • Mohamed Goaïed
  • Rym Ayed-Mouelhi

Abstract

This paper is concerned with the estimation of stochastic frontier production functions with unbalanced panel data when unobservable firm efficiency levels are related to explanatory variables. ≪We use the weighted-means≫ Instrumental Variables method acknowledged to R. Gardner (1998) which is a modification of the Hausman-Taylor (1981) procedure adapted for unbalanced panel data. The estimation method is used to examine technical efficiency in Tunisian textile, clothing and leather (TCL) industries during the period 1983–1994. Further, we assume a Translog production frontier where input uses are expressed in efficiency units and adjusted for the age of capital and types of labor. Firm-specific time-invariant technical efficiency is obtained using Schmidt and Sickles (1984) approach. The results suggest that the Instrumental Variables method produces more accurate estimates of the unknown firm level technical efficency. Mean efficency scores resulting from the MHT method is of 66.5%. Copyright Kluwer Academic Publishers 2000

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  • Mohamed Goaïed & Rym Ayed-Mouelhi, 2000. "Efficiency Measurement With Unbalanced Panel Data: Evidence from Tunisian Textile, Clothing and Leather Industries," Journal of Productivity Analysis, Springer, vol. 13(3), pages 249-262, May.
    • Handle: RePEc:kap:jproda:v:13:y:2000:i:3:p:249-262
    DOI: 10.1023/A:1007875009531
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    References listed on IDEAS

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    Cited by:

    1. Rim Ben Ayed-Mouelhi & Mohamed Goa�ed, 2003. "Efficiency Measure from Dynamic Stochastic Production Frontier: Application to Tunisian Textile, Clothing, and Leather Industries," Econometric Reviews, Taylor & Francis Journals, vol. 22(1), pages 93-111, February.
    2. Khaled Thabet, 2015. "Industrial structure and total factor productivity: the Tunisian manufacturing sector between 1998 and 2004," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 639-662, March.
    3. Rym Ben Ayed Mouelhi & Mohamed Goaied, 2001. "Efficience technique et incitations salariales. Analyse empirique sur un panel incomplet des industries textiles en Tunisie," Economie & Prévision, La Documentation Française, vol. 148(2), pages 99-111.
    4. Jaenicke, Edward C. & Larson, James A., 2001. "Production Risk Revisited In A Stochastic Frontier Framework: Evaluating Noise And Inefficiency In Cover Crop Systems," 2001 Annual meeting, August 5-8, Chicago, IL 20477, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Jaenicke, Edward C. & Frechette, Darren L. & Larson, James A., 2003. "Estimating Production Risk and Inefficiency Simultaneously: An Application to Cotton Cropping Systems," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-18, December.
    6. Mitze, Timo & Alecke, Björn & Untiedt, Gerhard, 2008. "Trade, FDI and Cross-Variable Linkages: A German (Macro-)Regional Perspective," MPRA Paper 12245, University Library of Munich, Germany.
    7. Magdalena Kapelko & Alfons Oude Lansink, 2015. "An international comparison of productivity change in the textile and clothing industry: a bootstrapped Malmquist index approach," Empirical Economics, Springer, vol. 48(4), pages 1499-1523, June.

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