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Technical efficiency of some selected manufacturing industries in Bangladesh: A stochastic frontier analysis


Baten, Md Azizul and Rana, Masud and Das, Sumonkanti and Khaleque, Md Abdul (2006) Technical efficiency of some selected manufacturing industries in Bangladesh: A stochastic frontier analysis. The Lahore Journal of Economics, 11 (2). pp. 23-41. ISSN 1811-5438

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Abstract

This paper investigates the technical efficiency of selected manufacturing industries of Bangladesh using a stochastic frontier production function approach suggested by Battese and Coelli (1992) applied to panel data.A feasible Cobb-Douglas stochastic frontier production function, which has time-varying technical inefficiency effects, was estimated.Two alternative distributions were used to model the random inefficiency term: a truncated normal distribution and a halfnormal distribution.The estimated average technical efficiency for four groups of industries of Bangladesh over the reference period was 40.22% of potential output for the truncated normal distribution, whereas it was 55.57% of potential output for the half-normal distribution.

Item Type: Article
Additional Information: 11 : 2 (Winter 2006)
Uncontrolled Keywords: Stochastic frontier, Production function, Technical efficiency
Subjects: Q Science > QA Mathematics
Divisions: College of Arts and Sciences
Depositing User: Prof. Madya Dr. Md. Azizul Baten
Date Deposited: 18 Dec 2014 07:01
Last Modified: 18 Dec 2014 07:01
URI: http://repo.uum.edu.my/id/eprint/12859

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