Publication:
Technical efficiency of manufactured rubber product in Malaysia: stochastic frontier analysis
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Date
2012
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Abstract
This paper investigates the technical efficiencies of rubber product manufacturing industry in Malaysia. We employed Stochastic Frontier Analysis (SFA). Secondary data from 313 firms that manufacture rubber product was obtained from the Annual Survey Of Manufacturing Industries 2004 by Department of Statistics Malaysia. Variables that are included in this are such as capital (RM), labor, and energy. Results clearly show that the mean technical efficiency of manufactured rubber product industry in Malaysia is 0.70328 or 70.33 percent. Majority of the firms are also fairly efficient in the use of available resources. Some technical assistance such as training programs for the proprietors of the firms and financial support such as subsidies could be offered to boost their production level as rubber is indeed an important component of the manufacturing industry in Malaysia.
Keywords
Stochastic frontier analysis , Technical efficiency , Malaysia , Rubber product manufactures
Citation
Radam, A., Ahali, N. M., & Abdul Hamid, B. (2012). Technical efficiency of manufactured rubber product in Malaysia: stochastic frontier analysis. Elixir Production Management, 42, pp. 6466-6471.
Publisher
Elixir