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Efficiency of Manufacturing Establishments in Eritrea

VNU Journal of Science: Economics and Business

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Field Value
 
Title Efficiency of Manufacturing Establishments in Eritrea
 
Creator Selomon, Tuccu; University of Dar es salaam
 
Description This paper discusses productive efficiency of a sample of firms using World Bank data from a sample of 179 Eritrean manufacturing firms. The results of the estimation of the technical efficiency model shows Eritrean manufacturing firms in general are inefficient. The study further investigated firms’ efficiency by nature of ownership, age of firm, experience of the entrepreneur and managers’ education.Both labour and capital are more productive under sole proprietorships or partnerships than incorporated firms. Labour is more productive for older firms and capital is more productive for younger firms. Results also show labour is more productive for firms with less experienced managers, while capital is more productive for high experienced managers. Also, labour is productive for both firms that are managed with less educated managers and high educated managers. In almost all cases return to scale appears to be less than one, suggesting the existence of high inefficiency. In general there was no significant difference in the existence of embodied technology among firms. The study suggests that firms need to examine and invest in technology and skills that may contribute to improved efficiency.
 
Publisher Dar es Salaam University Press
 
Contributor —
 
Date 2017-03-16
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journals.udsm.ac.tz/index.php/ter/article/view/374
 
Source Tanzania Economic Review; Vol 3, No 1-2 (2013): Tanzania Economic Review
2507-7740
0856-3373
 
Language eng
 
Relation https://journals.udsm.ac.tz/index.php/ter/article/view/374/620
 
Rights Copyright (c) 2017 Tanzania Economic Review