scholarly journals Evaluation of Manufacturing Competitiveness of Hubei Province Based on Stochastic Frontier Analysis

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Weidong Gai ◽  
Lei Zhou ◽  
Chun Chen
Keyword(s):  
Manufacturing Industry ◽  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Hubei Province ◽  
Central China ◽  
Frontier Analysis ◽  
Industrial Enterprises ◽  
Promotion Policies ◽  
Manufacturing Competitiveness

The manufacturing level directly manifests the comprehensive strength of a country or region. Production efficiency provides an important metric of the competitiveness of the manufacturing industry. Based on the data of China’s industrial enterprises of 1999–2011, this paper estimates the production efficiency of manufacturing in Central China’s Hubei Province through stochastic frontier analysis (SFA) and thus characterizes the differences between prefectures of Hubei in manufacturing competitiveness. The results show that, on the prefecture level, Xianning and Wuhan saw a decline in manufacturing competitiveness, while Xiangfan and Xiaogan witnessed an increase in manufacturing competitiveness. To enhance local manufacturing competitiveness and make Hubei the forerunner and cornerstone of Central China, different prefectures should adopt different industrial promotion policies, pay attention to cultivating the technological innovation capabilities of enterprises, and strengthen the integration of production, education, and research.

scholarly journals EFFECT OF GOVERNMENT SUBSIDIZATION ON CHINESE INDUSTRIAL FIRMS’ TECHNOLOGICAL INNOVATION EFFICIENCY: A STOCHASTIC FRONTIER ANALYSIS

2016 ◽  
Vol 17 (2) ◽  
pp. 187-200 ◽  
Author(s):  
Qi HUANG ◽  
Marshall S. JIANG ◽  
Jianjun MIAO
Keyword(s):  
Technological Innovation ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Small Scale ◽  
Industrial Firms ◽  
Frontier Analysis ◽  
Government Subsidies ◽  
Industrial Enterprises ◽  
Statistical Yearbook ◽  
The Relationship

This study aims to gain a better understanding of how effective government subsidization is in helping foster firms’ innovation. Drawing on the exploration/exploita- tion perspective and based on data collected from Statistical Yearbook on Science and Technology Activities of Industrial Enterprises, we look into the relationship between gov- ernment subsidization and Chinese firms’ innovation efficiency by applying a stochastic frontier analysis. The results show that when government subsidies are provided in small scale, firms’ innovation efficiency decreases; only when government subsidies increase to a certain scale, does firms’ innovation efficiency start to increase. We suggest that govern- ment subsidization would generate better innovation performance should it concentrate on a smaller number of firms at one time. As existing research is still inconclusive regarding the relationship between government subsidization and firms’ technological innovation output, we shed light on the issue by revealing a “U-shaped” relationship between the two.

scholarly journals Southeastern Peanut-Production Cost Efficiency Under the Quota System: Implications for the Farm-Level Impacts of the 2002 Farm Act

2006 ◽  
Vol 38 (1) ◽  
pp. 213-224 ◽  
Author(s):  
Denis A. Nadolnyak ◽  
Stanley M. Fletcher ◽  
Valentina M. Hartarska
Keyword(s):  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
The United States ◽  
Farm Size ◽  
Quota System ◽  
Frontier Analysis ◽  
Farm Level ◽  
Peanut Production ◽  
Growing Conditions

In the article, stochastic frontier analysis of peanut-production efficiency in the Southeastern region of the United States is conducted with a view of assessing the likely farm-level impacts of the 2002 Farm Act. Results indicate that, although quota ownership did not significantly impact inefficiency, it is likely that limitations on the quota's transferability to areas with better growing conditions were a significant cause of inefficiency. The acreage shifts and improved yields following the passage of the 2002 Farm Act support this conclusion. Certain farm characteristics, such as farm size and operator's education and age, were also important for efficiency.

Technical Efficiency (TE) in Malaysia Electric and Electronic Manufacturing Industry: A Stochastic Frontier Analysis (SFA) Approach

2021 ◽  
Vol 12 (1) ◽  
pp. 98-98
Author(s):  
Norayati Hashim ◽  
Mohd Fahmy Abdullah
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Industry ◽  
Stochastic Frontier Analysis ◽  
Developing Economies ◽  
Stochastic Frontier ◽  
Value Added ◽  
The United States ◽  
Average Growth ◽  
Frontier Analysis ◽  
Major Player

The Electric and Electronic (E&E) manufacturing industry is becoming more important for Malaysia economy that contributes to the Gross Domestic Product (GDP) and provide huge in job creation. Hence, real GDP grew at an average rate of 6.1% per year over 1970 to 2018 period, higher than the average growth of the advanced countries (OECD Economic Surveys: Malaysia 2019, 2019). Furthermore, Malaysia is a major player in the fast-expanding E&E market, of which major export destinations include Singapore, Hong Kong, the USA, PRC, Japan and Europe. In 2019, 37.8% of Malaysia total exports were from E&E industry, which accounted for RM372.67 billion worth of exports or 44.7 per cent of all manufacturing goods exported (MITI, 2019). However, the E&E manufacturing industry is fluctuating and was inconsistent in Malaysia (MITI, 2014). Furthermore, the external environment continued to be affected by global economic uncertainty in 2012, dampening demand for the E&E manufacturing industry exports to decrease by 2.5 percent to RM231.2 billion and had an impact on the labour market with total retrenchments increased by 35.2 percent to 7616, due mainly to higher layoffs in the manufacturing industry (MITI, 2012). This effect is due to the sovereign debt crisis in Europe, the United States (US) economic recovery was modest, dampened by both domestic and external weaknesses and the stagnant economy in Japan had an impact on the export performance. In addition that growing competition from manufacturers in developing economies such as China and ASEAN member countries, particularly in higher value-added assembly (Bank Negara Malaysia, 2012). Hence, Malaysia economic landscape year 2012 became more challenging to uncertainty affected by an increasingly competitive global environment. Keywords: Technical Efficiency, Electric and Electronics, Stochastic Frontier Analysis (SFA), Translog, Panel Data.

scholarly journals GLOBAL SOURCING AND TECHNICAL EFFICIENCY – A FIRM-LEVEL STUDY ON THE ICT INDUSTRY IN SWEDEN

2017 ◽  
Vol 18 (5) ◽  
pp. 877-896 ◽  
Author(s):  
Martin ANDERSSON ◽  
Trudy-Ann STONE
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Industry ◽  
Management Practices ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Efficient Production ◽  
Global Sourcing ◽  
Firm Level ◽  
Frontier Analysis ◽  
International Sourcing

We analyse the relationship between international sourcing, measured as imports of intermediate inputs, and the technical efficiency of firms in the information and communications technologies (ICT) manufacturing industry in Sweden. Using stochastic frontier analysis, we provide evidence that global sourcing improves firms’ capabilities to combine and re-combine inputs in productive ways, thereby increasing technical efficiency. We find a robust relationship between technical efficiency and international outsourcing. First, we find that firms that are deeply integrated into global sourcing networks are closer to their own production frontier. Second, firms that are engaged in international sourcing are also closer to the industry efficiency frontier. These findings are consistent with the argument that international sourcing stimulates firms’ capabilities by enabling them to identify and adopt higher quality inputs or more efficient production and management practices. These findings also suggest that the variety and extent of firms’ global sourcing networks constitute an important source of differences in efficiency levels among firms the ICT manufacturing industry.

scholarly journals EFISIENSI TEKNIS, PERTUMBUHAN TEKNOLOGI DAN TOTAL FAKTOR PRODUKTIVITAS PADA INDUSTRI MENENGAH DAN BESAR DI INDONESIA

2018 ◽  
Vol 6 (1) ◽  
pp. 1-20
Author(s):  
Muhammad Fazri ◽  
Hermanto Siregar ◽  
Nunung Nuryartono
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Industry ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Reform Era ◽  
Frontier Analysis ◽  
Tfp Growth ◽  
Technological Growth ◽  
Before And After ◽  
The Impact

Indonesia's economic growth this decade has good development. Not only growing but also more stable than before the reform era which is visible from the persistence of Indonesia at the level of positive growth during the economic crisis of 2008. Growth was good was followed by a change in the proportion of manufacturing industry in Indonesia which, if seen followed by a decrease in the production of some subsector indices industry. Total factor productivity (TFP) is one measure to look at other factors apart from the impact on production inputs such as technical efficiency and technological growth. In this study, in addition to trying to calculate TFP in some manufacturing industries subsector, in this study also wants to see the value of technical efficiency and the growth of the technology is a component of TFP calculations by the method of Stochastic Frontier Analysis (SFA). The results show that there is growing value of technical efficiency in some industries and most industries experienced relatively low growth of the technology. In the era before and after the crisis most of the industry has increased TFP growth but some industry decreased TFP growth. Keywords: SFA, Technical efficiency, Technological growth, TFP

scholarly journals PENGUKURAN ENVIRONMENTAL TECHNICAL EFFICIENCY INDUSTRI PENGOLAHAN DI JAWA TIMUR TAHUN 2006-2009

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Ratih Twi Septiriana
Keyword(s):  
Technical Efficiency ◽  
Co2 Emission ◽  
Manufacturing Industry ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Hyperbolic Distance ◽  
Environmental Characteristic ◽  
Frontier Analysis ◽  
Desirable Output ◽  
The One

CO2 emission is the greatest source of global warming that poses serious threats on environment, ecology, and socio-economic system. In the production process, CO2 is considered as undesirable output that always risesas long as desirable output is produced. Indonesia, as the one of the biggest emitter of CO2 emission, has been committing in reducing emission up to 26% for 2020. Using panel data, stochastic frontier analysis (SFA) has been used to evaluate the environmental technical efficiency of manufacturing industry in Java on 2006-2009. The translog hyperbolic distance function has been chose since this model can accommodate environmental characteristic of production technology. The empirical result shows the average environmental technical efficiency is 0,834. This study also investigates the factors that explain the level of environmental technical efficiency of firm. The results reveal that there are seven factors that significantly affecting environmental technical efficiency included: firm size, ownership status, foreign investment, type of industry, composition effect, scale effect, and technical effect. The finding of this paper indicate that environmental technical efficiency among manufacturing industry in Java still can be improved by focusing on those seven factor. 

Hope for Change: Is Diversifying Production Portfolios an Ideal Strategy to Boost Farming Efficiency in Afghanistan?

2021 ◽  
pp. 146499342110317
Author(s):  
Hayatullah Ahmadzai
Keyword(s):  
Production Efficiency ◽  
Management Practices ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Farm Households ◽  
Crop Diversification ◽  
Endogeneity Bias ◽  
Frontier Analysis ◽  
Farming Efficiency ◽  
Production Efficiencies

In this article, I present empirical evidence on the extent of crop diversification and assess its merits as a strategy for improving production efficiency in Afghanistan. The transformed Herfindahl–Harshman index is used to measure the scale and magnitude of crop diversification. I find a compelling evidence that diversifying production portfolios significantly improves production efficiencies. This finding is critical, given that the data show that nearly a third of the farm households do not diversify, achieving, on average, about 52% of potential revenues. The estimated efficiency scores reveal that, on average, the farm households in our analytical sample of over 7,000 households achieve 74% of potential revenue, with nearly 15% of households realizing less than 50% and about 23% between 50% and 70% of potential revenue. These results infer that there exist substantial inefficacies in agricultural production that can be eliminated by employing improved management practices without having to use additional inputs and production resources and rising cost of production. Our results are robust to potential endogeneity bias in crop diversification; I account for the endogeneity problem in the stochastic frontier analysis, by employing a recent estimation approach, using instrumental variable techniques. Mapping the spatial distribution of crop diversification index and estimated efficiency scores across the country revealed that districts with higher diversification levels correspond to higher efficiency indices. Aside from crop diversification, other socio-economic factors also have critical implications for efficiency; households with access to farm assets (such as land, cattle, oxen and tractor) and extension services appear to realize substantially higher production efficiencies. A direct policy recommendation that can be generated from the findings of this study is that crop diversification should be given more recognition by policymakers to enhance productivity and resilience in agriculture.

scholarly journals The Determinants of Technical Efficiency of Hazelnut Production in Azerbaijan: An Analysis of the Role of NGOs

2019 ◽  
Vol 11 (16) ◽  
pp. 4332 ◽  
Author(s):  
Orkhan Guliyev ◽  
Aijun Liu ◽  
Gershom Endelani Mwalupaso ◽  
Jarkko Niemi
Keyword(s):  
Technical Efficiency ◽  
Production Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Stakeholder Involvement ◽  
Cross Sectional ◽  
Frontier Analysis ◽  
Government Organizations ◽  
Good Organization

The role of non-government organizations (NGOs) has been commendable in promoting sustainable farming. Through mobilization of existing resources and provision of training to farmers on various agriculture subjects, NGOs could trigger increased productivity and agricultural sustainability. However, empirical evidence on this claim is limited and no study recognizes the supporting conditions required for NGO intervention to improve productivity. Cross-sectional data from hazelnut farmers in Azerbaijan are used to evaluate the role of NGO intervention in improving farmers’ technical efficiency. To this end, stochastic frontier analysis (SFA) is applied to study hazelnut farmers’ production efficiency. Three different measures are employed to estimate NGO intervention: Training, subsidy and, a combination of training and subsidy. The results indicate that NGO intervention is not significant in influencing technical efficiency. This is attributable to the absence of good organization, innovation orientation, accountability and stakeholder involvement and support which are the necessary supporting conditions facilitating an enabling environment for NGO intervention to improve farmers’ technical efficiency. Therefore, we recommend policy directed at addressing these issues in order to simultaneously enhance farmers’ productivity and improve the functioning of the NGOs. Beyond NGO intervention, encouraging farmers to specialize in hazelnut production and allocating more suitable land for hazelnut production will also improve farmers’ technical efficiency significantly.

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