IDEAS home Printed from
   My bibliography  Save this paper

Stochastic Frontier Analysis Of New Zealand'S Manufacturing Industries: Some Empirical Results


  • Gounder, Rukmani
  • Xayavong, Vilaphonh


This paper examines the sources of total factor productivity growth (TFP) in New Zealand's manufacturing industries over the period 1978-98 and over various sub-periods. Examination of the data adopts two stages using a stochastic frontier approach. The first stage involves the specification and estimation of the stochastic frontier production function and the prediction of technical efficiency effects. The second stage involves the specification of a regression model for the predicted technical efficiency effects. The sources of TFP growth have been decomposed into four components; i.e. technical progress, changes in technical efficiency, scale effects, and change in allocative efficiency. The empirical results show that productivity has been largely due to changes in technical progress, technical efficiency and resource allocation effect. The changes in technical progress and resource allocation have improved in the post-reform period, i.e. 1984-98, while technical efficiency has declined in the post-reform period. With respect to scale effect its contribution to productivity growth is quite small.

Suggested Citation

  • Gounder, Rukmani & Xayavong, Vilaphonh, 2004. "Stochastic Frontier Analysis Of New Zealand'S Manufacturing Industries: Some Empirical Results," Discussion Papers 23714, Massey University, Department of Applied and International Economics.
  • Handle: RePEc:ags:masddp:23714
    DOI: 10.22004/ag.econ.23714

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item

    More about this item


    Industrial Organization;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:masddp:23714. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.