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The Impact of Technology Accumulation on Technical Efficiency: an Analysis of the Sri Lankan Clothing and Agricultural Machinery Industries


  • Sonali Deraniyagala

    (Department of Economics, SOAS, University of London, UK)


This paper examines the effects of technology accumulation on firm-level technical efficiency in the Sri Lankan clothing and agricultural machinery industries, using cross-section survey data. Econometric analysis of the economic effects of technology development in developing countries is limited and this paper seeks to address this gap in the literature. The analysis shows simple adaptive technical change to have a significant and positive effect on efficiency in both industries. In addition, variables relating to technological skills and training also emerge as significant determinants of firm-level efficiency.

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  • Sonali Deraniyagala, 2000. "The Impact of Technology Accumulation on Technical Efficiency: an Analysis of the Sri Lankan Clothing and Agricultural Machinery Industries," Working Papers 103, Department of Economics, SOAS, University of London, UK.
  • Handle: RePEc:soa:wpaper:103

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    References listed on IDEAS

    1. Lall, Sanjaya & Teubal, Morris, 1998. ""Market-stimulating" technology policies in developing countries: A framework with examples from East Asia," World Development, Elsevier, vol. 26(8), pages 1369-1385, August.
    2. Aw, Bee Yan & Batra, Geeta, 1998. "Technological Capability and Firm Efficiency in Taiwan (China)," World Bank Economic Review, World Bank Group, vol. 12(1), pages 59-79, January.
    3. Dosi, Giovanni, 1997. "Opportunities, Incentives and the Collective Patterns of Technological Change," Economic Journal, Royal Economic Society, vol. 107(444), pages 1530-1547, September.
    4. 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.
    5. 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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