IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Trends of Total Factor Productivity in Egypt’s Pharmaceutical Industry: Evidence from the Nonparametric Malmquist Index Approach

Listed author(s):
  • Azza El-Shinnawy

    ()

    (Microsoft Education Lead for the Gulf, Dubai, UAE)

Registered author(s):

    In this paper, trends in total factor productivity (TFP) growth in 13 of Egypt’s largest and oldest pharmaceutical generics firms are examined. The paper relies on data envelopment analysis (DEA) —the non-parametric frontier methodology— to obtain the Malmquist productivity index for the sample firms, which account for 50% of Egypt’s generics market. The study period ranges from 1993 to 2005. Best-practice firms and laggard firms in the three aspects of efficiency change, technical change and TFP change are identified. Empirical results indicate the best-practice firm in terms of TFP change belongs to the private sector, while the laggard firm belongs to the state-owned public business sector. No differences of significance exist between the performance of private sector and state-owned generics companies. Additionally, state-owned companies which have been subject to partial privatization did not exhibit higher levels of TFP change than those which remained under full state-ownership. Empirical results also indicated that mean TFP change for the sample firms throughout the study period (1.01) exceeded the mean TFP change for all Egyptian industries (0.75), and that there was evident disassociation, or weak correlation at best, between productivity growth/regress and the degree of export orientation.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://erf.org.eg/wp-content/uploads/2014/08/524.pdf
    Download Restriction: no

    File URL: http://bit.ly/2mXcsEIFile-Fortext/html
    Download Restriction: no

    Paper provided by Economic Research Forum in its series Working Papers with number 524.

    as
    in new window

    Length: 29
    Date of creation: 05 Jan 2010
    Date of revision: 05 Jan 2010
    Publication status: Published by The Economic Research Forum (ERF)
    Handle: RePEc:erg:wpaper:524
    Contact details of provider: Postal:
    21 Al-Sad Al Aaly St. Dokki, Giza

    Phone: 202-3370810
    Fax: 202-3616042
    Web page: http://www.erf.org.eg
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    2. Norsworthy, J R & Malmquist, David H, 1983. "Input Measurement and Productivity Growth in Japanese and U.S. Manufacturing," American Economic Review, American Economic Association, vol. 73(5), pages 947-967, December.
    3. Xiaolan Fu, 2005. "Exports, technical progress and productivity growth in a transition economy: a non-parametric approach for China," Applied Economics, Taylor & Francis Journals, vol. 37(7), pages 725-739.
    4. Nina Pavcnik, 2002. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," Review of Economic Studies, Oxford University Press, vol. 69(1), pages 245-276.
    5. Handoussa, Heba & Nishimizu, Mieko & Page, John Jr., 1986. "Productivity change in Egyptian public sector industries after the opening, 1973-1979," Journal of Development Economics, Elsevier, vol. 20(1), pages 53-73.
    6. Parviz Asheghian, 1982. "Comparative Efficiencies of Foreign Firms and Local Firms in Iran," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 13(3), pages 113-120, September.
    7. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 903-947.
    8. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 613-646.
    9. Wilbur Chung & W Mitchell & B Yeung, 2003. "Foreign direct investment and host country productivity: the American automotive component industry in the 1980s," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(2), pages 199-218, March.
    10. Morteza Haghiri & James Nolan & Kien Tran, 2004. "Assessing the impact of economic liberalization across countries: a comparison of dairy industry efficiency in Canada and the USA," Applied Economics, Taylor & Francis Journals, vol. 36(11), pages 1233-1243.
    11. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
    12. Nancy Kong & Jose Tongzon, 2006. "Estimating total factor productivity growth in Singapore at sectoral level using data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(19), pages 2299-2314.
    13. Chow, Clement Kong-Wing & Fung, Michael Ka-Yiu, 1997. "Measuring the Technological Leadership of International Joint Ventures in a Transforming Economy," Journal of Business Research, Elsevier, vol. 39(2), pages 147-157, June.
    14. Keay, Ian, 2000. "Assessing the Performance of Canada's Manufacturers: Firm Level Evidence, 1902–1990," The Journal of Economic History, Cambridge University Press, vol. 60(02), pages 497-501, June.
    15. David Hauner, 2005. "Explaining efficiency differences among large German and Austrian banks," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 969-980.
    16. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-1393, September.
    17. Sangho Kim & Gwangho Han, 2001. "A Decomposition of Total Factor Productivity Growth in Korean Manufacturing Industries: A Stochastic Frontier Approach," Journal of Productivity Analysis, Springer, vol. 16(3), pages 269-281, November.
    18. Arcelus, Francisco J. & Arocena, Pablo, 2000. "Convergence and productive efficiency in fourteen OECD countries: A non-parametric frontier approach," International Journal of Production Economics, Elsevier, vol. 66(2), pages 105-117, June.
    19. Zhiqiang Liu, 2001. "Efficiency and Firm Ownership: Some New Evidence," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 19(4), pages 481-496, December.
    20. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    21. Nishimizu, Mieko & Robinson, Sherman, 1984. "Trade policies and productivity change in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 177-206.
    22. Jefferson, Gary H. & Rawski, Thomas G. & Zheng, Yuxin, 1996. "Chinese Industrial Productivity: Trends, Measurement Issues, and Recent Developments," Journal of Comparative Economics, Elsevier, vol. 23(2), pages 146-180, October.
    23. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-1064, September.
    24. Renuka Mahadevan, 2004. "The Economics of Productivity in Asia and Australia," Books, Edward Elgar Publishing, number 2682.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:524. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.