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Restructuring and Efficiency in the Manufacturing Sector: A Firm Level Approach Applied to Morocco

Listed author(s):
  • Lahcen Achy

    ()

    (INSEA)

  • Samy Ben Naceur
  • Adel Ben Youssef
  • Samir Ghazouani

The aim of the present paper is to analyze the impacts of the upgrading policies adopted by Morocco for almost ten years. We apply the stochastic frontier approach initiated by Battese and Coelli (1995) to a panel of 282 firms from Morocco during the period [1998–2005]. Such parametric methodology leads to estimating the technical efficiency for Moroccan firms and we obtain an average of no more that 13.3 percent, which is considered very low. Yet what is important is the possibility to conduct, in a second stage, an evaluation of the impact of some environmental factors on pure technical efficiency. In this sense, improvement of technical efficiency is detected for firms which have officially subscribed in the upgrading process.

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Paper provided by Economic Research Forum in its series Working Papers with number 565.

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Length: 22
Date of creation: 11 Jan 2010
Date of revision: 11 Jan 2010
Publication status: Published by The Economic Research Forum (ERF)
Handle: RePEc:erg:wpaper:565
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  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. Tybout, James & de Melo, Jamie & Corbo, Vittorio, 1991. "The effects of trade reforms on scale and technical efficiency : New evidence from Chile," Journal of International Economics, Elsevier, vol. 31(3-4), pages 231-250, November.
  3. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
  4. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  5. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211.
  6. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
  7. Kaplinsky, Raphael & Morris, Mike & Readman, Jeff, 2002. "The Globalization of Product Markets and Immiserizing Growth: Lessons From the South African Furniture Industry," World Development, Elsevier, vol. 30(7), pages 1159-1177, July.
  8. Robert Hunter Wade, 2003. "What strategies are viable for developing countries today? The World Trade Organization and the shrinking of ‘development space’," LSE Research Online Documents on Economics 28239, London School of Economics and Political Science, LSE Library.
  9. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
  10. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-374, October.
  11. Cammett, Melani, 2007. "Business-Government Relations and Industrial Change: The Politics of Upgrading in Morocco and Tunisia," World Development, Elsevier, vol. 35(11), pages 1889-1903, November.
  12. Shunxiang Wu & Stephen Devadoss & Yaochi Lu, 2003. "Estimation and decomposition of technical efficiency for sugarbeet farms," Applied Economics, Taylor & Francis Journals, vol. 35(4), pages 471-484.
  13. Navaretti, Giorgio Barba & Tarr, David G, 2000. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Bank Economic Review, World Bank Group, vol. 14(1), pages 1-15, January.
  14. Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
  15. Pustay, Michael W, 1978. "Industry Inefficiency under Regulatory Surveillance," Journal of Industrial Economics, Wiley Blackwell, vol. 27(1), pages 49-68, September.
  16. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
  17. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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