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Patterns of technical efficiency in the Venezuelan manufacturing sector (2007)

Author

Listed:
  • José Contreras

    (Investigador Senior. Oficina de Investigaciones Económicas. Banco Central de Venezuela. Avenida. Urdaneta esquina Las Carmelitas, Caracas 1010-Venezuela. Dirección Postal: Apartado 2017, Carmelitas Caracas 1010-Venezuela.)

  • Andrés Santeliz

    (Investigador Invitado. Oficina de Investigaciones Económicas. Banco Central de Venezuela. Avenida. Urdaneta esquina Las Carmelitas Caracas 1010-Venezuela Dirección Postal: Apartado 2017, Carmelitas Caracas 1010-Venezuela.)

  • Oscar Carvallo

    (Investigador Senior. Oficina de Investigaciones Económicas. Banco Central de Venezuela. Avenida. Urdaneta esquina Las Carmelitas Caracas 1010-Venezuela Dirección Postal: Apartado 2017, Carmelitas Caracas 1010-Venezuela.)

Abstract

As a component of a research project aimed at characterizing the Venezuelan industry, this paper is a contribution to the evaluation of technical efficiency and its determinants for the manufacturing sector. With this purpose in mind we use the concept of X-inefficiency. For the evaluation, we estimated a stochastic production function and performed several tests for various efficiency determinants. The data source was the PRACEM manufacturing survey for 2007 from the Central Bank of Venezuela. We found that firm size and liquidity of assets were positively correlated with efficiency. The most efficient sectors are associated with the industrial base created during the “import substitution” period: agro industry and textile and paper industries.

Suggested Citation

  • José Contreras & Andrés Santeliz & Oscar Carvallo, 2012. "Patterns of technical efficiency in the Venezuelan manufacturing sector (2007)," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(34), pages 121-137, july-dece.
    • Handle: RePEc:ula:econom:v:37:y:2012:i:34:p:121-137
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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