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Export orientation and technical efficiency: clothing firms in China

Author

Listed:
  • Vincent Mok

    (School of Accounting and Finance, Hong Kong Polytechnic University, Hung Hom, Hong Kong)

  • Godfrey Yeung

    (Department of Geography, National University of Singapore, Singapore)

  • Zhaozhou Han

    (Department of Statistics, Jinan University, Guangzhou, China)

  • Zongzhang Li

    (School of Economics and Management, South China Agricultural University, Guangzhou, China)

Abstract

Based on 287 of the largest clothing manufacturing firms in southern China in terms of output value, we employed data envelopment analysis to estimate the technical efficiency of the sample firms. A regression analysis was conducted to examine the effects of export orientation on technical efficiency. Our results suggest a U-shaped relationship between export ratio and technical efficiency. The specific nature of the industry in Guangdong province can explain that clothing firms with a high degree of sales in the domestic market or with a high level of export orientation experience a higher level of technical efficiency than those firms trying to conquer both the local and the overseas markets. Copyright © 2010 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:mgtdec:v:31:y:2010:i:7:p:453-463
    DOI: 10.1002/mde.1500
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    References listed on IDEAS

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    3. Adugna Lemi & Ian Wright, 2020. "Exports, foreign ownership, and firm-level efficiency in Ethiopia and Kenya: an application of the stochastic frontier model," Empirical Economics, Springer, vol. 58(2), pages 669-698, February.
    4. Ferri Kuswantoro & M. Mohd Rosli & Radiah Abdul Kader, 2012. "Innovation In Distribution Channel(S) & Cost Efficiency On Small & Medium Enterprise Scales’ Performance In Indonesia," Journal of Global Entrepreneurship, Global Research Agency, vol. 3(1), pages 42-67, July.

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