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Technical Efficiency Indicators in a Philippine Manufacturing Sector

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  • Federico Mini
  • Edgard Rodriguez

Abstract

This paper uses the stochastic production frontier approach to investigate the relationship between size and technical efficiency in the Philippines textile industry. Results show that technical efficiency increases with size, thus weakening the case for SME targeted policies. Moreover, both exports and government interventions are positively associated with efficiency, although the link between government support and technical efficiency is somewhat weaker.

Suggested Citation

  • Federico Mini & Edgard Rodriguez, 2000. "Technical Efficiency Indicators in a Philippine Manufacturing Sector," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(4), pages 461-473.
  • Handle: RePEc:taf:irapec:v:14:y:2000:i:4:p:461-473 DOI: 10.1080/02692170050150138
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    References listed on IDEAS

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    1. Kumbhakar, Subal C., 1987. "The specification of technical and allocative inefficiency in stochastic production and profit frontiers," Journal of Econometrics, Elsevier, vol. 34(3), pages 335-348, March.
    2. Lee, Lung-Fei, 1983. "A test for distributional assumptions for the stochastic frontier functions," Journal of Econometrics, Elsevier, vol. 22(3), pages 245-267, August.
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    Cited by:

    1. Margono, Heru & Sharma, Subhash C., 2006. "Efficiency and productivity analyses of Indonesian manufacturing industries," Journal of Asian Economics, Elsevier, vol. 17(6), pages 979-995, December.
    2. Dasgupta, Susmita & Lucas, Robert E. B. & Wheeler, David, 1998. "Small manufacturing plants, pollution, and poverty : new evidence from Brazil and Mexico," Policy Research Working Paper Series 2029, The World Bank.
    3. Jorge David Quinteo Otero & William Orlando Prieto Bustos & Fernando Barrios Aguirre & Laura Elena Leviller Guardo, 2008. "Determinantes de la eficiencia técnica en las empresas colombianas, 2001-2004," REVISTA SEMESTRE ECONÓMICO, UNIVERSIDAD DE MEDELLÍN, November.
    4. 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.

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