An international comparison of productivity change in the textile and clothing industry: a bootstrapped Malmquist index approach
Kapelko, M. ; Oude Lansink, A.G.J.M. - \ 2015
Empirical Economics 48 (2015)4. - ISSN 0377-7332 - p. 1499 - 1523.
nonparametric frontier models - data envelopment analysis - technical efficiency - industrialized countries - technological-change - profitability change - detecting outliers - framework - progress - growth
Firms in the textile and clothing industry operate in competitive international markets characterized by the liberalized trade after the removal of multi-fiber agreement quotas in 2005, and have to address rapid changes in consumer preferences and production technology. Hence, improving competitiveness is crucial for firm survival. Competitiveness of the sector often depends on its firms meeting their production potential. This paper analyzes productivity changes in the textile and clothing industry worldwide during the period 1995-2004. A bootstrapped Malmquist approach is used to identify the respective contributions of technical change, technical efficiency change, and scale efficiency change. Moreover, differences in productivity changes across different groups of firms are statistically assessed. Our results show a relatively small overall productivity increase for both textile and clothing firms due to positive technical change, despite declines in technical and scale efficiency. Furthermore, our results indicate that productivity and its components differ for textile firms and clothing firms, for firms in countries that benefited and did not benefit from the quotas' elimination, and for firms in different regions. © 2014 The Author(s).
Measuring the impacts of production risk on technical efficiency: A state-contingent conditional order-m approach
Serra, T. ; Oude Lansink, A.G.J.M. - \ 2014
European Journal of Operational Research 239 (2014)1. - ISSN 0377-2217 - p. 237 - 242.
nonparametric frontier models - cheap talk - technologies - uncertainty - inference - corn
This article studies the influence of risk on farms' technical efficiency levels. The analysis extends the order-m efficiency scores approach proposed by Daraio and Simar (2005) to the state-contingent framework. The empirical application focuses on cross section data of Catalan specialized crop farms from the year 2011. Results suggest that accounting for production risks increases the technical performance. A 10% increase in output risk will result in a 2.5% increase in average firm technical performance. © 2014 Elsevier B.V. All rights reserved.
Comparing technical efficiency of farms with an automatic milking system and a conventional milking system
Steeneveld, W. ; Tauer, L.W. ; Hogeveen, H. ; Oude Lansink, A.G.J.M. - \ 2012
Journal of Dairy Science 95 (2012)12. - ISSN 0022-0302 - p. 7391 - 7398.
nonparametric frontier models
Changing from a conventional milking system (CMS) to an automatic milking system (AMS) necessitates a new management approach and a corresponding change in labor tasks. Together with labor savings, AMS farms have been found to have higher capital costs, primarily because of higher maintenance costs and depreciation. Therefore, it is hypothesized that AMS farms differ from CMS farms in capital:labor ratio and possibly their technical efficiency, at least during a transition learning period. The current study used actual farm accounting data from dairy farms in the Netherlands with an AMS and a CMS to investigate the empirical substitution of capital for labor in the AMS farms and to determine if the technical efficiency of the AMS farms differed from the CMS farms. The technical efficiency estimates were obtained with data envelopment analysis. The 63 AMS farms and the 337 CMS farms in the data set did not differ in general farm characteristics such as the number of cows, number of hectares, and the amount of milk quota. Farms with AMS have significantly higher capital costs (€12.71 per 100 kg of milk) than CMS farms (€10.10 per 100 kg of milk). Total labor costs and net outputs were not significantly different between AMS and CMS farms. A clear substitution of capital for labor with the adoption of an AMS could not be observed. Although the AMS farms have a slightly lower technical efficiency (0.76) than the CMS farms (0.78), a significant difference in these estimates was not observed. This indicates that the farms were not different in their ability to use inputs (capital, labor, cows, and land) to produce outputs (total farm revenues). The technical efficiency of farms invested in an AMS in 2008 or earlier was not different from the farms invested in 2009 or 2010, indicating that a learning effect during the transition period was not observed. The results indicate that the economic performance of AMS and CMS farms are similar. What these results show is that other than higher capital costs, the use of AMS rather than a CMS does not affect farm efficiency and that the learning costs to use an AMS are not present as measured by any fall in technical efficiency. Key words: automatic milking , dairy , data envelopment analysis , technical efficiency
The Micro-Dynamics of Catch Up in Indonesian Paper Manufacturing
Dijk, M. van; Szirmai, A. - \ 2011
Review of Income and Wealth 57 (2011)1. - ISSN 0034-6586 - p. 61 - 83.
nonparametric frontier models - productivity growth - technological-change - developing-countries - labor productivity - real output - firm-level - innovation - efficiency - selection
In this study we analyze the micro-dynamics of catch-up in Indonesian paper manufacturing, using a two-country plant-level dataset for the period 1975–97. We apply data envelopment analysis (DEA) to measure to what extent Indonesian paper mills are catching up with Finnish mills in terms of technical efficiency. Three questions are addressed: What is the distribution of Indonesian plant technical efficiency vis-à-vis the technological frontier? What is the role of entry, exit, and survival in Indonesia for catch-up in the paper industry as a whole? In what ways do catching-up plants in Indonesia differ from non-catching-up plants? We find that on average the Indonesian paper industry moved closer to the technological frontier during the 1990s. However, catch-up has been a highly localized process in which only a few large establishments have achieved near best-practice performance, while most other plants have stayed behind.