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Production technologies and technical efficiency: evidence from Portuguese manufacturing industry

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  • Ana Faria
  • Paul Fenn
  • Alistair Bruce

Abstract

This paper aims to test whether a given type of process innovation, namely flexible production technologies (FPTs), contributes to increased firm efficiency. Using one-year firm data from the Portuguese manufacturing industry and applying a parametric stochastic frontier approach, individual technical efficiencies are obtained and their determinants simultaneously estimated, using a single-step procedure recently proposed by Battese and Coelli (1995). The results support the hypothesis that technological flexibility, measured through the use of FPTs, is important in explaining differences in efficiency. Furthermore, given the specifications of the stochastic frontier function, the null hypothesis that Portuguese firms are fully technically efficient is rejected.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:9:p:1037-1046
    DOI: 10.1080/00036840500109191
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    References listed on IDEAS

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    Cited by:

    1. Carlos Carreira & Paulino Teixeira, 2008. "Internal and external restructuring over the cycle: a firm-based analysis of gross flows and productivity growth in Portugal," Journal of Productivity Analysis, Springer, vol. 29(3), pages 211-220, June.
    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 Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 779(32á)-77, Diciembre.
    3. Geys, Benny & Moesen, Wim, 2008. "Exploring sources of local government technical inefficiency: evidence from Flemish municipalities
      [Ursachenforschung zur technischen Ineffizienz kommunaler Verwaltungen: Evidenz von flämischen Gem
      ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-18, Social Science Research Center Berlin (WZB).

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