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1 – 10 of over 3000
Open Access
Article
Publication date: 2 December 2016

Taylor Boyd, Grace Docken and John Ruggiero

The purpose of this paper is to improve the estimation of the production frontier in cases where outliers exist. We focus on the case when outliers appear above the true frontier

2811

Abstract

Purpose

The purpose of this paper is to improve the estimation of the production frontier in cases where outliers exist. We focus on the case when outliers appear above the true frontier due to measurement error.

Design/methodology/approach

The authors use stochastic data envelopment analysis (SDEA) to allow observed points above the frontier. They supplement SDEA with assumptions on the efficiency and show that the true frontier in the presence of outliers can be derived.

Findings

This paper finds that the authors’ maximum likelihood approach outperforms super-efficiency measures. Using simulations, this paper shows that SDEA is a useful model for outlier detection.

Originality/value

The model developed in this paper is original; the authors add distributional assumptions to derive the optimal quantile with SDEA to remove outliers. The authors believe that the value of the paper will lead to many citations because real-world data are often subject to outliers.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 17 May 2018

Laura Barasa, Patrick Vermeulen, Joris Knoben, Bethuel Kinyanjui and Peter Kimuyu

Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this paper is to…

5241

Abstract

Purpose

Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this paper is to investigate the technical efficiency effects arising from innovation inputs including internal R&D, human capital development (HCD), and foreign technology adoption in manufacturing firms in Africa.

Design/methodology/approach

This study uses cross-sectional firm-level survey data from the 2013 World Bank Enterprise Survey and the linked 2013 Innovation Follow-up Survey. A heteroscedastic half-normal stochastic frontier is used for analysing the technical efficiency effects of innovation inputs of 418 firms.

Findings

This study reveals that internal R&D, and foreign technology have negative effects on technical efficiency. Notwithstanding, the combination of foreign technology and internal R&D, and foreign technology and HCD reinforce each other’s effects on technical efficiency.

Practical implications

This study provides evidence that whereas individual innovation inputs may not yield positive efficiency outcomes, the combination of absorptive capacity enhancing inputs comprising internal R&D and HCD with foreign technology is vital for enhancing technical efficiency in manufacturing firms in Africa. This study offers important lessons for managers in manufacturing firms in Africa.

Originality/value

This study is virtually the first to investigate the relationship between innovation inputs and efficiency in Africa. This study demonstrates that investing in foreign technology in isolation from absorptive capacity enhancing innovation inputs diminishes efficiency. HCD and internal R&D are imperative for building absorptive capacity that enhances efficiency outcomes arising from foreign technology.

Details

European Journal of Innovation Management, vol. 22 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 30 June 2007

Young-Tae Chang and Paul T.W. Lee

Port competition attracted much scholarly attention in Northwest Europe during the 1980s. Following the rise of powerful economies in East Asia, particularly during the 1980s and…

Abstract

Port competition attracted much scholarly attention in Northwest Europe during the 1980s. Following the rise of powerful economies in East Asia, particularly during the 1980s and 1990s, port competition has become an important phenomenon with the top five container ports in the world being located in the region. This paper aims to overview major port competition issues and outlines and analyzes the main alternative methodologies that researchers have employed to address them, referring to 70 items, mostly papers but including a few books and reports

Details

Journal of International Logistics and Trade, vol. 5 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 11 April 2024

Yot Amornkitvikai, Martin O'Brien and Ruttiya Bhula-or

The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing…

Abstract

Purpose

The development of green manufacturing has become essential to achieve sustainable development and modernize the nation’s manufacturing and production capacity without increasing nonrenewable resource consumption and pollution. This study investigates the effect of green industrial practices on technical efficiency for Thai manufacturers.

Design/methodology/approach

The study uses stochastic frontier analysis (SFA) to estimate the stochastic frontier production function (SFPF) and inefficiency effects model, as pioneered by Battese and Coelli (1995).

Findings

This study shows that, on average, Thai manufacturing firms have experienced declining returns-to-scale production and relatively low technical efficiency. However, it is estimated that Thai manufacturing firms with a green commitment obtained the highest technical efficiency, followed by those with green activity, green systems and green culture levels, compared to those without any commitment to green manufacturing practices. Finally, internationalization and skill development can significantly improve technical efficiency.

Practical implications

Green industry policy mixes will be vital for driving structural reforms toward a more environmentally friendly and sustainable economic system. Furthermore, circular economy processes can promote firms' production efficiency and resource use.

Originality/value

To the best of the authors' knowledge, this study is the first to investigate the effect of green industry practices on the technical efficiency of Thai manufacturing enterprises. This study also encompasses analyses of the roles of internationalization, innovation and skill development.

Details

Journal of Asian Business and Economic Studies, vol. 31 no. 3
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 11 October 2022

Olawale Daniel Akinyele, Olusola Mathew Oloba and Gisele Mah

African countries are endowed with both human and natural resources. These resources constitute integral components for any economic development due to the long-lasting…

2218

Abstract

Purpose

African countries are endowed with both human and natural resources. These resources constitute integral components for any economic development due to the long-lasting relationship with all sectors in an economy, yet there is an obvious disagreement between growing economy and employment generation in Africa. Though there has been a growing pattern of economic size, particularly the gross domestic product (GDP) among African countries, most of these economies are low in human development. The disagreement between economic growth and employment generation in Africa despite abundant natural resources located on the continent calls for public discourse among scholars. Therefore, the purpose of the study is to examine the peculiar drivers of unemployment intensity in a region characterized by endowed resources.

Design/methodology/approach

The paper adopts two approaches; the authors employed the pooled mean group (PMG) estimator and utilised stochastic frontier analysis (SFA) to generate a government efficiency index between the period 1991 and 2017 among sub-Saharan Africa (SSA) countries.

Findings

The empirical results through the single output-multiple inputs framework indicate that on average, there is a low level of government efficiency towards increasing the objective of human development in Africa. However, in the long run, natural resource endowment has a positive and significant relationship with employment generation for SSA. Hence, the study established that a low level of government efficiency has a long-lasting effect on low human development experienced in Africa.

Social implications

The need to improve the level of government efficiency towards economic development by making both human and physical capital more effective will spur the exploration of natural resources.

Originality/value

The paper provides an empirical study of the effectiveness and efficiency of government through PMG and SFA in establishing the relationship between government approaches and employment level in selected SSA countries.

Details

Review of Economics and Political Science, vol. 8 no. 3
Type: Research Article
ISSN: 2356-9980

Keywords

Content available
Article
Publication date: 15 July 2020

Jie Wu and Ron Fisher

452

Abstract

Details

Industrial Management & Data Systems, vol. 121 no. 4
Type: Research Article
ISSN: 0263-5577

Content available
Article
Publication date: 11 May 2021

Esteban Lafuente and László Szerb

Abstract

Details

Competitiveness Review: An International Business Journal, vol. 31 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Open Access
Article
Publication date: 31 January 2024

Joonho Na, Qia Wang and Chaehwan Lim

The purpose of this study is to analyze the environmental efficiency level and trend of the transportation sector in the upper–mid–downstream of the Yangtze River Economic Belt…

Abstract

Purpose

The purpose of this study is to analyze the environmental efficiency level and trend of the transportation sector in the upper–mid–downstream of the Yangtze River Economic Belt and the JingJinJi region in China and assess the effectiveness of policies for protecting the low-carbon environment.

Design/methodology/approach

This study uses the meta-frontier slack-based measure (SBM) approach to evaluate environmental efficiency, which targets and classifies specific regions into regional groups. First, this study employs the SBM with the undesirable outputs to construct the environmental efficiency measurement models of the four regions under the meta-frontier and group frontiers, respectively. Then, this study uses the technology gap ratio to evaluate the gap between the group frontier and the meta-frontier.

Findings

The analysis reveals several key findings: (1) the JingJinJi region and the downstream of the YEB had achieved the overall optimal production technology in transportation than the other two regions; (2) significant technology gaps in environmental efficiency were observed among these four regions in China; and (3) the downstream region of the YEB exhibited the lowest levels of energy consumption and excessive CO2 emissions.

Originality/value

To evaluate the differences in environmental efficiency resulting from regions and technological gaps in transportation, this study employs the meta-frontier model, which overcomes the limitation of traditional environmental efficiency methods. Furthermore, in the practical, the study provides the advantage of observing the disparities in transportation efficiency performed by the Yangtze River Economic Belt and the Beijing–Tianjin–Hebei regions.

Details

Journal of International Logistics and Trade, vol. 22 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 23 August 2019

Jose F. Baños, Ana Rodriguez-Alvarez and Patricia Suarez-Cano

This paper aims to model the efficiency of labour offices belonging to the public employment services (PESs) in Spain using a stochastic matching frontier approach.

2435

Abstract

Purpose

This paper aims to model the efficiency of labour offices belonging to the public employment services (PESs) in Spain using a stochastic matching frontier approach.

Design/methodology/approach

With this aim in mind, the authors apply a random parameter model approach to control for observed and unobserved heterogeneity.

Findings

Results indicate that when the information criteria of the estimates are analysed, it improves by controlling both, observed and unobserved heterogeneity in the inefficiency term. Also, results suggest that counsellors improve the productivity of labour offices and that the share of unemployed skilled persons, unemployed persons aged 44 or younger, as well as the share of unemployed persons in the construction sector, all affect the technical efficiency of PESs offices.

Originality/value

The model extends the previous specifications in the matching literature that capture only observed heterogeneity. Moreover, as far as the authors know, it is the first paper that estimates a matching frontier for the Spanish case. Finally, the database they use is at the office level and includes the work carried out by counsellors, which is a novelty in the analysis of this type of studies at the Spanish level.

Details

Applied Economic Analysis, vol. 27 no. 81
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 6 May 2020

Phong Hoang Nguyen and Duyen Thi Bich Pham

The paper aims to enrich previous findings for an emerging banking industry such as Vietnam, reporting the difference between the parametric and nonparametric methods when…

4376

Abstract

Purpose

The paper aims to enrich previous findings for an emerging banking industry such as Vietnam, reporting the difference between the parametric and nonparametric methods when measuring cost efficiency. The purpose of the study is to assess the consistency in issuing policies to improve the cost efficiency of Vietnamese commercial banks.

Design/methodology/approach

The cost efficiency of banks is assessed through the data envelopment analysis (DEA) and the stochastic frontier analysis (SFA). Next, five tests are conducted in succession to analyze the differences in cost efficiency measured by these two methods, including the distribution, the rankings, the identification of the best and worst banks, the time consistency and the determinants of efficiency frontier. The data are collected from the annual financial statements of Vietnamese banks during 2005–2017.

Findings

The results show that the cost efficiency obtained under the SFA models is more consistent than under the DEA models. However, the DEA-based efficiency scores are more similar in ranking order and stability over time. The inconsistency in efficiency characteristics under two different methods reminds policy makers and bank administrators to compare and select the appropriate efficiency frontier measure for each stage and specific economic conditions.

Originality/value

This paper shows the need to control for heterogeneity over banking groups and time as well as for random noise and outliers when measuring the cost efficiency.

Details

Journal of Economics and Development, vol. 22 no. 2
Type: Research Article
ISSN: 1859-0020

Keywords

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