Technical Efficiency in Irish Manufacturing Industry, 1991-1999
This paper measures the technical efficiency levels in the Electrical and Optical Equipment industry in Irish manufacturing sector and examines the factors that could affect these levels utilising a stochastic production frontier approach over the period 1991-99 using firm-level panel data. Using the model outlined by Battese and Coelli (1995) we find that investment intensity and labour quality play an important role in explaining technical inefficiency levels in all sub-sectors of the Electrical and Optical Equipment industry. We found no significant relationship between export intensity and the technial inefficiency levels of inidividual firms in all but one sector, namely Television and Radio recievers industry.
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