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Firm Size and Efficiency in the South African Motor Vehicle Industry

Author

Listed:
  • Lila J. Truett

    (University of Texas at San Antonio)

  • Dale B.Truett

    (University of Texas at San Antonio)

Abstract

This study examines the cost performance of the South African motor vehicle industry, using data categorized by output level of the firms. The results are consistent with statistically significant economies of scale at the lowest output levels and a cost inefficiency averaging about seven to nine percent. The findings also suggest that, all else equal, the smallest firms and the largest firms have lower unit costs than mid-size firms.

Suggested Citation

  • Lila J. Truett & Dale B.Truett, 2007. "Firm Size and Efficiency in the South African Motor Vehicle Industry," Working Papers 0021, College of Business, University of Texas at San Antonio.
    • Handle: RePEc:tsa:wpaper:0053eco
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    File URL: http://interim.business.utsa.edu/wps/eco/0021ECO-102-2007.pdf
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    More about this item

    Keywords

    Skilled-unskilled wage inequality; Unemployment; International factor movement;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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