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Textile manufacturing in eight developing countries: How far does the business environment explain firms’ productive inefficiency?

Auteur : Chaffai Mohamed, Kinda Tidiane, Plane Patrick
Date de publication : 06/11/2009
Type : Actes de congrès / Séminaire / Atelier
Thème : Industrie

Résumé/Sommaire :

Production frontiers and inefficiency determinants are estimated by using stochastic models.Textile manufacturing is considered for a sample of eight developing countries encompassingabout one thousand firms. We find that the most influential individual inefficiencydeterminants relate to in-house organization. Both access to financing and infrastructuralservices (e.g. power supply, modern information technologies…) also matter. Informationabout determinants is then regrouped into three broad categories (e.g. managerialorganization, economic environment, institutions) by using principal component analyses.Results do not reject the hypothesis that managerial know-how and the quality of institutionsare the most important determinants. The impact of the external economic environment is ofless importance although statistically significant. Simulations are then proposed in order toassess productivity gains which would occur if firms had the opportunity to evolve in mostfavorable environments within the sample. For this analysis, domestic and internationallevels are considered, respectively. When focusing on domestic benchmarks, the contributionof organizational factors prevails for all countries. The role of institutions proves dominantfor three countries (Egypt, India, and Ecuador) when we refer to international simulations.

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