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Journal of Productivity Analysis

, Volume 21, Issue 1, pp 91–103 | Cite as

A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies

  • George E. Battese
  • D. S. Prasada Rao
  • Christopher J. O'Donnell
Article

Abstract

This paper presents a metafrontier production function model for firms in different groups having different technologies. The metafrontier model enables the calculation of comparable technical efficiencies for firms operating under different technologies. The model also enables the technology gaps to be estimated for firms under different technologies relative to the potential technology available to the industry as a whole. The metafrontier model is applied in the analysis of panel data on garment firms in five different regions of Indonesia, assuming that the regional stochastic frontier production function models have technical inefficiency effects with the time-varying structure proposed by Battese and Coelli (1992).

metafrontier technical efficiency technology gap Indonesia garment industry 

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References

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • George E. Battese
    • 1
  • D. S. Prasada Rao
    • 2
  • Christopher J. O'Donnell
    • 2
  1. 1.University of New EnglandArmidaleAustralia
  2. 2.university of QueenslandBrisbaneAustralia

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