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Adaptive Technology Strategies and Technical Efficiency: Evidence from the Sri Lankan Agricultural Machinery Industry


  • Sonali Deraniyagala

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


Recent research has highlighted the importance of technology strategies in influencing the economic performance of firms in developing countries. Attention has focused on two types of strategies; the first which involves adopting technologies developed elsewhere without undertaking any modifications and the second which involves investing in such technologies but adapting them to suit firm-specific needs and circumstances. Whilst it has been indicated that the second type of adaptive strategy is likely to lead to higher productivity gains than the first, this hypothesis has not been tested econometrically. Using survey data, this paper undertakes an econometric analysis of the effects of these alternative technology strategies on firm-level technical efficiency in the agricultural machinery industry in Sri Lanka. Controlling for other possible determinants, it finds that adaptive strategies have a significant positive effect on efficiency in this industry.

Suggested Citation

  • Sonali Deraniyagala, 2000. "Adaptive Technology Strategies and Technical Efficiency: Evidence from the Sri Lankan Agricultural Machinery Industry," Working Papers 104, Department of Economics, SOAS, University of London, UK.
  • Handle: RePEc:soa:wpaper:104

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    References listed on IDEAS

    1. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-859, July.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
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    Cited by:

    1. Christine Ngoc Ngo & Miao Chi, 2017. "Differentials in market constraints and value addition among micro, small, and medium enterprises in Viet Nam," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).

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    Industry; Technology; Efficiency;


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