Technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta-frontier analysis

Article


Le, Viet, Vu, Xuan-Binh (Benjamin) and Nghiem, Son. 2018. "Technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta-frontier analysis." Economic Analysis and Policy. 59, pp. 84-91. https://doi.org/10.1016/j.eap.2018.03.001
Article Title

Technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta-frontier analysis

ERA Journal ID18341
Article CategoryArticle
AuthorsLe, Viet (Author), Vu, Xuan-Binh (Benjamin) (Author) and Nghiem, Son (Author)
Journal TitleEconomic Analysis and Policy
Journal Citation59, pp. 84-91
Number of Pages8
Year2018
PublisherElsevier
Place of PublicationAustralia
ISSN0313-5926
Digital Object Identifier (DOI)https://doi.org/10.1016/j.eap.2018.03.001
Web Address (URL)https://www.sciencedirect.com/science/article/abs/pii/S0313592617302151
Abstract

Small and medium-size enterprises (SMEs) play a vital role in the Vietnamese economy; hence more understanding of their efficiency is of interest for a variety of various stakeholders in Vietnam. This paper estimates technological gaps and identifies factors affecting variations in the technical efficiency of SMEs in Vietnam using firm-level survey data in 2008 in a stochastic meta-frontier framework. We found that, on average, SMEs can increase their current outputs by eight percent using the same quantity of inputs. Firms operating in major cities such as Hanoi and Ho Chi Minh City are found to be more efficient and possess better technology. Our evidence indicates that most SMEs in Vietnam use relatively low-level technologies, evidenced by the higher return from labour and raw materials than that from capital.

KeywordsTechnical efficiency; Meta-frontier; SMEs; Vietnam
ANZSRC Field of Research 2020380199. Applied economics not elsewhere classified
Byline AffiliationsSwinburne University of Technology
Griffith University
Institution of OriginUniversity of Southern Queensland
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