IDEAS home Printed from https://ideas.repec.org/a/sae/jjlobr/v12y2023i1p44-57.html
   My bibliography  Save this article

Major Apparel Exporting Countries in Asia: A Study of Technical Efficiency and Its Determinants

Author

Listed:
  • Dhwani Gambhir

Abstract

Asia has many significant players in the global apparel market, contributing more than half of the apparel output. There is stiff competition between eight countries within the region to capture the market share—China, Bangladesh, India, Pakistan, Sri Lanka, Vietnam, Cambodia and Indonesia. Using raw data from the World Bank Enterprise Surveys, a two-stage analysis was conducted for each country—in the first stage efficiency scores were computed using data envelopment analysis, and in the second stage factors influencing efficiency were identified using tobit regression and disaggregate comparison. The results revealed a poor efficiency performance across countries, but the drivers varied between them. It was observed that smaller firms performed better and there was a need to revamp quality certification and training modules to promote competitiveness.

Suggested Citation

  • Dhwani Gambhir, 2023. "Major Apparel Exporting Countries in Asia: A Study of Technical Efficiency and Its Determinants," Jindal Journal of Business Research, , vol. 12(1), pages 44-57, June.
  • Handle: RePEc:sae:jjlobr:v:12:y:2023:i:1:p:44-57
    DOI: 10.1177/22786821231161858
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/22786821231161858
    Download Restriction: no

    File URL: https://libkey.io/10.1177/22786821231161858?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Quang-Thanh Ngo & Quang-Van Tran & Tien-Dung Nguyen & Trung-Thanh Nguyen, 2020. "How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam," Economies, MDPI, vol. 8(3), pages 1-25, July.
    2. Gladys Lopez Acevedo & Raymond Robertson, 2016. "Stitches to Riches? Apparel Employment, Trade, and Economic Development in South Asia," Working Papers id:10650, eSocialSciences.
    3. Lopamudra D. Satpathy & Bikash Ranjan Mishra, 2019. "Size-Competition-Productivity Nexus: Evidence from Indian Manufacturing Firms," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 20(2), pages 303-321, September.
    4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    5. Haidar, Jamal Ibrahim, 2012. "Trade and productivity: Self-selection or learning-by-exporting in India," Economic Modelling, Elsevier, vol. 29(5), pages 1766-1773.
    6. Joe Sarkis, 2007. "Preparing Your Data for DEA," Springer Books, in: Joe Zhu & Wade D. Cook (ed.), Modeling Data Irregularities and Structural Complexities in Data Envelopment Analysis, chapter 0, pages 305-320, Springer.
    7. McDonald, John, 2009. "Using least squares and tobit in second stage DEA efficiency analyses," European Journal of Operational Research, Elsevier, vol. 197(2), pages 792-798, September.
    8. Souksavanh Vixathep & Nobuaki Matsunaga, 2012. "Firm Efficiency in Cambodia's Garment Industry on the Eve of the Multi-Fiber Arrangement Termination," Asian Economic Journal, East Asian Economic Association, vol. 26(4), pages 359-380, December.
    9. Johannes Van Biesebroeck, 2007. "Robustness Of Productivity Estimates," Journal of Industrial Economics, Wiley Blackwell, vol. 55(3), pages 529-569, September.
    10. Vincent Mok & Godfrey Yeung & Zhaozhou Han & Zongzhang Li, 2010. "Export orientation and technical efficiency: clothing firms in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 453-463.
    11. I.K.M. Mokhtarul Wadud, 2004. "Technical Efficiency in Australian Textile and Clothing Firms: Evidence From the Business Longitudinal Survey," Australian Economic Papers, Wiley Blackwell, vol. 43(3), pages 357-378, September.
    12. Sushanta Mallick & Yong Yang, 2013. "Productivity Performance of Export Market Entry and Exit: Evidence from Indian Firms," Review of International Economics, Wiley Blackwell, vol. 21(4), pages 809-824, September.
    13. Karine Chapelle & Patrick Plane, 2005. "Technical efficiency measurement within the manufacturing sector in Côte d'Ivoire: A stochastic frontier approach," Post-Print hal-02444307, HAL.
    14. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    15. Souksavanh Vixathep & Nobuaki Matsunaga, 2012. "Firm performance in a transitional economy: a case study of Vietnam's garment industry," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(1), pages 74-93.
    16. Karine Chapelle & Patrick Plane, 2005. "Technical efficiency measurement within the manufacturing sector in Cote d'Ivoire: A stochastic frontier approach," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1303-1324.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Varun Mahajan & D. K. Nauriyal & S. P. Singh, 2018. "Efficiency and Its Determinants: Panel Data Evidence from the Indian Pharmaceutical Industry," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(1), pages 19-40, February.
    2. Lee, Boon L. & Wilson, Clevo & Simshauser, Paul & Majiwa, Eucabeth, 2021. "Deregulation, efficiency and policy determination: An analysis of Australia's electricity distribution sector," Energy Economics, Elsevier, vol. 98(C).
    3. Corne, Aurélie & Peypoch, Nicolas, 2020. "On the determinants of tourism performance," Annals of Tourism Research, Elsevier, vol. 85(C).
    4. Maria EL KHDARI & Babacar SARR, 2018. "Decentralization, spending efficiency and pro-poor outcomes in Morocco," Working Papers 201805, CERDI.
    5. Alexander Cotte Poveda, 2012. "Estimating Effectiveness of the Control of Violence and Socioeconomic Development in Colombia: An Application of Dynamic Data Envelopment Analysis and Data Panel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 105(3), pages 343-366, February.
    6. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Vassilios Babalos & Michael Doumpos & Nikolaos Philippas & Constantin Zopounidis, 2015. "Towards a Holistic Approach for Mutual Fund Performance Appraisal," Computational Economics, Springer;Society for Computational Economics, vol. 46(1), pages 35-53, June.
    8. Fadzlan Sufian & Muzafar Shah Habibullah, 2010. "Bank-specific, Industry-specific and Macroeconomic Determinants of Bank Efficiency," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(4), pages 427-461, November.
    9. Eugenia Nissi & Massimiliano Giacalone & Carlo Cusatelli, 2019. "The Efficiency of the Italian Judicial System: A Two Stage Data Envelopment Analysis Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(1), pages 395-407, November.
    10. Changhee Kim & Soo Wook Kim & Hee Jay Kang & Seung-Min Song, 2017. "What Makes Urban Transportation Efficient? Evidence from Subway Transfer Stations in Korea," Sustainability, MDPI, vol. 9(11), pages 1-18, November.
    11. Widiarto, Indra & Emrouznejad, Ali, 2015. "Social and financial efficiency of Islamic microfinance institutions: A Data Envelopment Analysis application," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 1-17.
    12. Veronese da Silva, Aline & Costa, Marcelo Azevedo & Lopes-Ahn, Ana Lúcia, 2022. "Accounting multiple environmental variables in DEA energy transmission benchmarking modelling: The 2019 Brazilian case," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    13. Salas-Velasco, Manuel, 2018. "Production efficiency measurement and its determinants across OECD countries: The role of business sophistication and innovation," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 60-73.
    14. Vincent Mok & Godfrey Yeung & Zhaozhou Han & Zongzhang Li, 2010. "Export orientation and technical efficiency: clothing firms in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 453-463.
    15. Alexandre de Cássio Rodrigues & Carlos Alberto Gonçalves & Tiago Silveira Gontijo, 2019. "A two-stage DEA model to evaluate the efficiency of countries at the Rio 2016 Olympic Games," Economics Bulletin, AccessEcon, vol. 39(2), pages 1538-1545.
    16. Berger, Michael & Sommersguter-Reichmann, Margit & Czypionka, Thomas, 2020. "Determinants of soft budget constraints: how public debt affects hospital performance in Austria," LSE Research Online Documents on Economics 116865, London School of Economics and Political Science, LSE Library.
    17. Ioannis E. Tsolas, 2020. "Financial Performance Assessment of Construction Firms by Means of RAM-Based Composite Indicators," Mathematics, MDPI, vol. 8(8), pages 1-16, August.
    18. Varun Mahajan & D. K. Nauriyal & S. P. Singh, 2020. "Domestic market competitiveness of Indian drug and pharmaceutical industry," Review of Managerial Science, Springer, vol. 14(3), pages 519-559, June.
    19. Cosmin Eugen ENACHE, 2012. "The efficiency of expenditure-related redistributive policies in the European countries," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 5(18), pages 380-394.
    20. Fadzlan Sufian & Muzafar Shah Habibullah, 2012. "Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes," Progress in Development Studies, , vol. 12(1), pages 19-46, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jjlobr:v:12:y:2023:i:1:p:44-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.