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

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Listed author(s):
  • Lahcen Achy

    ()

    (INSEA)

  • Samy Ben Naceur
  • Adel Ben Youssef
  • Samir Ghazouani

Abstract

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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  7. 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.
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  13. 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.
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  15. 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.
  16. 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.
  17. 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.
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Cited by:

  1. Lahcen Achy, 2013. "Structural Transformation and Industrial Policy in Morocco," Working Papers 796, Economic Research Forum, revised Nov 2013.

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