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Production technology, elasticity of substitution and technical efficiency of the handloom textile industry of Bangladesh

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  • Mohammad Jaforullah

Abstract

A number of translog and Cobb-Douglas frontier production models were estimated for the Bangladesh handloom textile industry to investigate its production technology and technical efficiency in production. It was found that the technical efficiency of the industry in producing cloth was only 41%. It was concluded that the industry might improve its technical efficiency by increasing its male/female labour ratio and yarn/capital ratio and decreasing its hired/family labour ratio and labour/capital ratio. The production technology of the industry was found to be characterized by a linearly homogeneous Cobb-Douglas function. The elasticity of substitution between labour and capital for the industry was found to be unity.

Suggested Citation

  • Mohammad Jaforullah, 1999. "Production technology, elasticity of substitution and technical efficiency of the handloom textile industry of Bangladesh," Applied Economics, Taylor & Francis Journals, vol. 31(4), pages 437-442.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:4:p:437-442
    DOI: 10.1080/000368499324147
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    Cited by:

    1. Anthony Rezitis & Kostas Tsiboukas & Stauros Tsoukalas, 2002. "Measuring technical efficiency in the Greek agricultural sector," Applied Economics, Taylor & Francis Journals, vol. 34(11), pages 1345-1357.
    2. Coll Serrano, V. & Blasco Blasco, O.Mª., 2009. "Evolución de la eficiencia técnica de la industria textil española en el periodo 1995-2005. Análisis mediante un modelo frontera estocástica/Technical Efficiency In The Textile Industry Of Spain In Th," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 779(32á)-77, Diciembre.
    3. Ana Faria & Paul Fenn & Alistair Bruce, 2005. "Production technologies and technical efficiency: evidence from Portuguese manufacturing industry," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 1037-1046.
    4. Benita Maldonado, Francisco J. & Gaytán Alfaro, Edgar D. & Rodallegas Portillo, Mayra C., 2012. "Un estudio no paramétrico de eficiencia para la minería de Zacatecas, México || A Non-Parametric Approach to Efficiency for Mining in Zacatecas, Mexico," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 14(1), pages 54-75, December.
    5. Paul Bishop & Steven Brand, 2003. "The efficiency of museums: a stochastic frontier production function approach," Applied Economics, Taylor & Francis Journals, vol. 35(17), pages 1853-1858.

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