Technical efficiency in Australian textile and clothing firms: evidence from the business longitudinal survey

Wadud, I.K.M Mokhtarul 2004, Technical efficiency in Australian textile and clothing firms: evidence from the business longitudinal survey, Australian economic papers, vol. 43, no. 3, pp. 357-378.

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Title Technical efficiency in Australian textile and clothing firms: evidence from the business longitudinal survey
Author(s) Wadud, I.K.M Mokhtarul
Journal name Australian economic papers
Volume number 43
Issue number 3
Start page 357
End page 378
Publisher University of Adelaide and Flinders University and Blackwell Publishing Asia Pty Ltd
Place of publication Adelaide, S. Aust.
Publication date 2004-09
ISSN 0004-900X
1467-8454
Summary This paper estimates technical efficiency of Australian textile and clothing firms based on the data obtained from the Business Longitudinal Survey (BLS) conducted by the Australian Bureau of Statistics (ABS). Using a Cobb Douglas stochastic production frontier the paper examines firm level technical efficiency in the time varying inefficiency effect model with technical inefficiency effects assumed as an independently distributed truncated normal variable. Estimates of the production frontier revealed significant but small elasticities of labour and capital for textile and clothing firms, respectively, and a negative (but insignificant) Hicks neutral technical change for both. Estimated coefficients of the explanatory variables for inefficiency effects indicated that technical efficiency varied significantly according to firms’ age, size, capital intensity, proportion of non-production to total workers and type of legal status. Predicted firm specific efficiency varied from 16 per cent to 95 per cent and mean efficiency ranged between 30 to 70 per cent. In view of these results policies have been suggested to improve technical efficiency of the firms as well as productivity growth of the sub sectors.
Language eng
Field of Research 140304 Panel Data Analysis
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2004, Blackwell Publishing Ltd/University of Adelaide and Flinders University of South Australia
Persistent URL http://hdl.handle.net/10536/DRO/DU:30002514

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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