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Textile Manufacturing in Eight Developing Countries: Does Business Environment Matter for Firm Technical Efficiency?

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  • Mohamed Chaffai
  • Tidiane Kinda
  • Patrick Plane

Abstract

Production frontiers with technical inefficiency determinants are estimated using stochastic models for textile manufacturing in eight developing countries encompassing about 800 firms. Inefficiency determinants are considered either on an individual basis, or in the form of composite indicators reflecting in-house or managerial factors and various dimensions of the external environment. Although each of these two categories of factors is statistically significant, the former proves more influential in the explanation of the difference in efficiency between firms. Simulations are then proposed to assess the efficiency levels that would occur if firms had the opportunity to produce in the most favourable productive environments.

Suggested Citation

  • Mohamed Chaffai & Tidiane Kinda & Patrick Plane, 2012. "Textile Manufacturing in Eight Developing Countries: Does Business Environment Matter for Firm Technical Efficiency?," Journal of Development Studies, Taylor & Francis Journals, vol. 48(10), pages 1470-1488, October.
    • Handle: RePEc:taf:jdevst:v:48:y:2012:i:10:p:1470-1488
    DOI: 10.1080/00220388.2012.671471
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    References listed on IDEAS

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    1. Ricardo Hausmann & Dani Rodrik & Charles F. Sabel, 2008. "Reconfiguring Industrial Policy: A Framework with an Application to South Africa," CID Working Papers 168, Center for International Development at Harvard University.
    2. repec:wbk:wbpubs:15077 is not listed on IDEAS
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    Cited by:

    1. Heinrich, Torsten & Yang, Jangho & Dai, Shuanping, 2020. "Growth, development, and structural change at the firm-level: The example of the PR China," MPRA Paper 105011, University Library of Munich, Germany.
    2. International Monetary Fund, 2015. "Republic of Poland: Selected Issues," IMF Staff Country Reports 2015/183, International Monetary Fund.
    3. Nadine Levratto & Clarisse Nguedam Ntouko & Maarouf Ramadan, 2017. "Institutions and firms’ internationalization: an empirical analysis on three Middle East countries," EconomiX Working Papers 2017-37, University of Paris Nanterre, EconomiX.
    4. Mohamed Chaffai & Patrick Plane, 2017. "Firm Productivity, Technology and Export Status, What Can We Learn from Egyptian Industries?," Working Papers 1134, Economic Research Forum, revised 09 Jun 2017.
    5. M.A. Véganzonès-Varoudakis & H. T. M. Nguyen, 2018. "Investment climate, outward orientation and manufacturing firm productivity: new empirical evidence," Applied Economics, Taylor & Francis Journals, vol. 50(53), pages 5766-5794, November.
    6. Tidiane Kinda, 2018. "The quest for non-resource-based FDI: Do taxes matter?," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 11(1), pages 1-18, January.
    7. Duong Phuong Thao Pham & Duc Huynh & Kim-Linh Le & Thao-Anh Le, 2025. "Factors Affecting the Support of Industrial Businesses’ Performance in Vietnam’s Digital Economy," Sustainability, MDPI, vol. 17(17), pages 1-23, September.
    8. Nadine Levratto & Clarisse Nguedam Ntouko & Maarouf Ramadan, 2017. "Institutions and firms' internationalization: an empirical analysis on three Middle East countries [Institutions et internationalisation des entreprises: une analyse empirique sur trois pays du moyen orient]," Working Papers hal-04141631, HAL.
    9. Elitsa R Banalieva & Alvaro Cuervo-Cazurra & Ravi Sarathy, 2018. "Dynamics of pro-market institutions and firm performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(7), pages 858-880, September.
    10. Kenichi Kashiwagi & Erina Iwasaki, 2020. "Effect of agglomeration on technical efficiency of small and medium‐sized garment firms in Egypt," African Development Review, African Development Bank, vol. 32(1), pages 14-26, March.
    11. Junaid Ahmed, 2025. "Pakistan`s Dismal Export Performance: A Survey of Empirical Literature," PIDE-Working Papers 2025:10, Pakistan Institute of Development Economics.
    12. Sumon Kumar Bhaumik, 2022. "Technical Efficiency and Its Determinants in the Manufacturing Sector: What We Know and What We Should Know," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 36, pages 1411-1432, Springer.
    13. Peter Josef Stauvermann & Ronald Ravinesh Kumar & Syed Jawad Hussain Shahzad & Nikeel N. Kumar, 2018. "Effect of tourism on economic growth of Sri Lanka: accounting for capital per worker, exchange rate and structural breaks," Economic Change and Restructuring, Springer, vol. 51(1), pages 49-68, February.
    14. Bekele Hundessa Delelegn & Birku Reta Entele & Tsegaye Mulugeta Habtewold, 2026. "Adaptive efficiency under systemic shock: reassessing export-led growth, process innovation, and local sourcing in Ethiopian manufacturing industries during Covid-19," SN Business & Economics, Springer, vol. 6(2), pages 1-49, February.
    15. Hoang Thanh Mai NGUYEN & Marie-Ange VEGANZONES-VAROUDAKIS, 2017. "Investment climate, outward orientation and manufacturing firm productivity: New empirical evidence," Working Papers 201717, CERDI.
    16. Mr. Tidiane Kinda, 2019. "E-commerce as a Potential New Engine for Growth in Asia," IMF Working Papers 2019/135, International Monetary Fund.

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