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Influences of the Business Environment on Manufacturing Firms Technical Efficiencies: The Côte d’Ivoire Case

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Abstract

An unbalanced panel is used to estimate technical and managerial efficiency levels of manufacturing firms in Côte d’Ivoire. A stochastic frontier production model with non-neutral effects on technical efficiency of the business environment variables is specified. This specification allows to evaluate and to compare technical efficiencies and efficiency levels net of business environment influences. In order to determine net efficiency levels in the non-neutral case, a practical method based on the definition of an artificial environment is proposed. Results suggest that informal firms are less technically efficient than formal firms whereas their managerial performances are closed to those of formal firms.

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Authors and Affiliations

  1. ARQADE, University of Toulouse, Allée de Brienne 21, 31000, Toulouse, France

    Nolwenn Roudaut

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  1. Nolwenn Roudaut
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Correspondence to Nolwenn Roudaut.

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Roudaut, N. Influences of the Business Environment on Manufacturing Firms Technical Efficiencies: The Côte d’Ivoire Case. J Prod Anal 25, 93–109 (2006). https://doi.org/10.1007/s11123-006-7133-y

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  • DOI: https://doi.org/10.1007/s11123-006-7133-y

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