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

Le, Viet and Vu, Xuan-Binh (Benjamin) ORCID: https://orcid.org/0000-0003-0238-002X 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. ISSN 0313-5926


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.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 03 Aug 2021 22:53
Last Modified: 01 Sep 2021 01:04
Uncontrolled Keywords: Technical efficiency; Meta-frontier; SMEs; Vietnam
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380199 Applied economics not elsewhere classified
Identification Number or DOI: https://doi.org/10.1016/j.eap.2018.03.001
URI: http://eprints.usq.edu.au/id/eprint/43002

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