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IDENTIFYING AND ESTIMATING SOURCES OF TECHNICAL INEFFICIENCY IN KOREAN MANUFACTURING INDUSTRIES
Author(s) -
Kim Sangho
Publication year - 2003
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1093/cep/21.1.132
Subject(s) - inefficiency , stochastic frontier analysis , panel data , industrial organization , production–possibility frontier , manufacturing sector , production (economics) , econometrics , economics , frontier , manufacturing , business , microeconomics , international economics , marketing , archaeology , history
This study estimated translog stochastic frontier production functions using an unbalanced panel of Korean manufacturing firms in the food, textile, paper, chemical, basic‐metal, and fabrication sectors. The sectors were estimated individually to investigate whether technical efficiency is systematically related to firm size, dependency on external funds, research and development investments, and exports. The empirical results suggest that firm size has a positive and significant effect in every sector. The effects of the other factors are less systematic and vary across sectors.