Yunus, Ibrahim (2014) Technical efficiency of small scale food industries: The case of Kedah and Perlis. In: International SME Conference (ISMEC 2014), 18 to 19 August 2014, Kuala Lumpur.

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Abstract

This study attempts to examine technical efficiency of small food industries in the states of Kedah and Perlis. The most important problems of entrepreneurs found in this study were limited export market thus limit for further expansion of small scale food industries.In addition the entrepreneurs still adopting the traditional type of production which may be time consuming and this lead to become inefficient in the process of production.An econometric technique of the Stochastic Frontier Production function approach was applied whereby technical efficiency was measured.The results showed that technical efficiencies were rather low among the small scale food manufacturers.This is due to changing structure and labor saving technologies which focus towards modernization of the food industry. However several policy reforms are needed to enhance the competitiveness of the food industries especially pertaining to export markets.It can be conclude that improved extension linkage to sentisize the producers of the need to increase the production to cater for export market.In addition, the government must make every efforts of some joint cooperation between these small medium industries with the Government Link Companies.

Item Type:	Conference or Workshop Item (Paper)
Additional Information:	ISBN: 978-983-42220-4-8 Organised by: School of Economics, Finance and Banking, Universiti Utara Malaysia
Uncontrolled Keywords:	Technical efficiency, technical progress, scale efficiency, stochastic frontier
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	13 Oct 2015 01:59
Last Modified:	18 Apr 2016 08:11
URI:	https://repo.uum.edu.my/id/eprint/15707

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