AGE, EXPORT ORIENTATION AND TECHNICAL EFFICIENCY: EVIDENCE FROM GARMENT FIRMS IN DKI JAKARTA | Zendy

Dedi Walujadi | Zendy

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AGE, EXPORT ORIENTATION AND TECHNICAL EFFICIENCY: EVIDENCE FROM GARMENT FIRMS IN DKI JAKARTA

Author(s) -

Dedi Walujadi

Publication year - 2004

Publication title -

makara human behavior studies in asia

Language(s) - English

Resource type - Journals

eISSN - 2406-9183

pISSN - 2355-794X

DOI - 10.7454/mssh.v8i3.97

Subject(s) - orientation (vector space) , business , industrial organization , mathematics , geometry

In this paper, the technical efficiency of garment firms in DKI Jakarta is estimated by incorporating a model for the technical inefficiency effects in the stochastic frontier production function. The aims are to estimate both the technical efficiency of the firms and the sources of technical inefficiency within the context of Indonesia’s macro-economic policy. The empirical results point a number of noteworthy features of the economic performance of firms in relation with some specific characteristics. It is found in the study that the Cobb douglas functional form was not adequate, but the sources of technical inefficiency were found and technical change was present. Keywords: technical efficiency, stochastic frontier production function, panel data, garment firm

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