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A Nonparametric Approach To Estimating And Testing The Productive Efficiency Differential

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  • Jusoh, Mansor
  • Jaafar, Hamid

Abstract

This paper was conceived as an extension of the contribution by Kopp (1981) in developing an approach to efficiency measure that synthesizes. Farrell efficiency measure and the frontier production function. The extension is in the aspect of providing a measure for comparing productive efficiency differential between two groups of firms existing in the same competitive industry. To test the efficiency differential, we proposed the Mann-Whitney Test Statistic. As an illustration of the proposed measure, we used data from three Malaysian agricultural processing industries, that is, rice milling, rubber remilling and oilpalm processing. In the exercise, we estimated and test the technical efficiency differential between private and public firms in each industry and found that in rice milling and rubber remilling, private firms are technically more efficiency than their public counterpart. In oilpalm processing, the two groups of firms are equally efficient (or equally inefficient).

Suggested Citation

  • Jusoh, Mansor & Jaafar, Hamid, 1989. "A Nonparametric Approach To Estimating And Testing The Productive Efficiency Differential," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 12(1), pages 1-17, June.
    • Handle: RePEc:ags:bdbjaf:208093
    DOI: 10.22004/ag.econ.208093
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    Cited by:

    1. Jaafar, Abdul Hamid & jusoh, mansor, 1997. "Technical Efficiency of Pepper Farms in Sarawak," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 31, pages 71-85.

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    Research Methods/ Statistical Methods;

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