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).
Shadow Price Approach to Total Factor Productivity Measurement: With an Application to Finnish Grass-Silage Production
Kuosmanen, T.K. ; Post, T. ; Sipiläinen, T. - \ 2004
Journal of Productivity Analysis 22 (2004)1-2. - ISSN 0895-562X - p. 95 - 121.
fisher ideal indexes - industrialized countries - technical progress - efficiency change - growth - numbers
This paper explores an intermediate route between the Fisher and the Malmquist productivity indexes so as to minimize data requirements and assumptions about economic behavior of production units and their production technology. Assuming quantity data of inputs and outputs and the behavioral hypothesis of allocative efficiency, we calculate the exact value of the Fisher ideal productivity index using implicit shadow prices revealed by the choice of input-output mix. The approach is operationalized by means of a nonparametric data envelopment analysis (DEA) model. Empirical application to Finnish grass silage farms suggests that the Malmquist and the Fisher productivity indices yield similar results when averaged over firms, but there can be major differences in the results of the two approaches at the level of individual firms.