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Sources Of Productivity Growth In Australian Textile And Clothing Firms

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  • I.K.M. MOKHTARUL WADUD

Abstract

This paper estimates the sources of productivity growth in Australian textile and clothing firms based on the Business Longitudinal Survey (BLS) from 1995 to 1998. Productivity growth estimates have been obtained for each sub‐category of textile and clothing firms. Sources of growth in multifactor productivity (MFP) are examined with growth in technical efficiency and scale effects based on estimates of stochastic frontier production functions. Separate estimates of output growth have been compared with the productivity growth estimates for each of the product categories. MFP improved in all clothing firms and declined in textile firms over 1997–1998 by four‐digit level of Australia New Zealand Standard Industrial classification Scheme (ANZSIC). MFP declined in most major categories of both textile and clothing firms in 1995–1997. Changes in technical efficiency mostly dominated scale effects in the overall direction of MFPG in both textile and clothing firms. The findings of the study provide evidence for policies for improving the firms’ operative performance in the ongoing liberalised regime.

Suggested Citation

  • I.K.M. Mokhtarul Wadud, 2007. "Sources Of Productivity Growth In Australian Textile And Clothing Firms," Australian Economic Papers, Wiley Blackwell, vol. 46(3), pages 254-281, September.
  • Handle: RePEc:bla:ausecp:v:46:y:2007:i:3:p:254-281
    DOI: 10.1111/j.1467-8454.2007.00318.x
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    Cited by:

    1. Nguepi Tsafack Elvis & Hua Cheng & Buregeya Ingabire Providence, 2022. "The Illustrative Understanding on the Informal Sector and Its Influence in Firm Productivity in Sub-Saharan Africa (SSA): Evidence from Cameroon," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    2. Magdalena Kapelko & Alfons Oude Lansink, 2015. "An international comparison of productivity change in the textile and clothing industry: a bootstrapped Malmquist index approach," Empirical Economics, Springer, vol. 48(4), pages 1499-1523, June.

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