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Firm size, age and efficiency: Evidence from Kenyan manufacturing firms

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  • Karl Lundvall
  • George Battese

Abstract

Translog stochastic frontier production functions are estimated using an unbalanced panel of 235 Kenyan manufacturing firms in the food, wood, textile and metal sectors. The sectors are estimated individually in order to investigate whether technical efficiency is systematically related to the size and age of firms. The evidence suggests that firm size has a positive and significant effect in the wood and textile sectors. The age effect is less systematic, but is insignificant in all sectors, except textiles.

Suggested Citation

  • Karl Lundvall & George Battese, 2000. "Firm size, age and efficiency: Evidence from Kenyan manufacturing firms," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 146-163.
  • Handle: RePEc:taf:jdevst:v:36:y:2000:i:3:p:146-163
    DOI: 10.1080/00220380008422632
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    1. Haddad, Mona, 1993. "How trade liberalization affected productivity in Morocco," Policy Research Working Paper Series 1096, The World Bank.
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