Technical Efficiency of Thai Manufacturing SMEs: a Comparative Study of North-eastern Provinces
A major motivation of this study is to examine factors that are most important in contributing to the relatively poor efficiency performance of Thai manufacturing SMEs. The results obtained will be significant in devising effective policies aimed at tackling this poor performance. This paper uses data on manufacturing SMEs in the North-eastern region of Thailand in 2007 as a case study, by applying a stochastic frontier analysis (SFA) and technical inefficiency effects model. The empirical results obtained indicate that the mean technical efficiency of all categories of manufacturing SMEs in the North-eastern region is 43 percent, implying that manufacturing SMEs have high levels of technical inefficiency in their production process. Manufacturing SMEs in the North-eastern region are particularly labour intensive. The empirical results of the technical inefficiency effects model suggest that skilled labour, municipal area and ownership characteristics are important firm-specific factors affecting technical efficiency. The paper argues that the government should play a more substantive role in developing manufacturing SMEs in the North-eastern provinces through: providing training programs for employees and employers, encouraging greater usage of capital and technology in the production process of SMEs, enhancing the efficiency of state owned enterprises, encouraging a wide range of ownership forms and improving information and communications infrastructure.
|Date of creation:||2012|
|Contact details of provider:|| Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia|
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tim J. Coelli, 1995.
"Recent Developments In Frontier Modelling And Efficiency Measurement,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
- Coelli, Tim J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December.
- Coelli, T. J., 1995. "Recent Developments in Frontier Modelling and Efficiency Measurement," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148798, Australian Agricultural and Resource Economics Society.
- George E. Battese & Greg S. Corra, 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(3), pages 169-179, December.
- Sangho Kim, 2003. "Identifying And Estimating Sources Of Technical Inefficiency In Korean Manufacturing Industries," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 132-144, 01.
- Quoc Ngu Vu, 2003. "Technical Efficiency of Industrial State-Owned Enterprises in Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 17(1), pages 87-101, 03.
- Thi Bich Tran & R. Quentin Grafton & Tom Kompas, 2008. "Firm Efficiency in a Transitional Economy: Evidence from Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 22(1), pages 47-66, 03.
When requesting a correction, please mention this item's handle: RePEc:uow:depec1:wp12-03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Siminski)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.