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Measuring technical efficiency: The case of Thai manufacturing and exporting small and medium size enterprises (SMEs)

Conference Paper


Abstract


  • This paper employs stochastic frontier analysis (SFA) to analyse an inefficiency

    effects model for 3,894 Thai manufacturing and exporting small and medium size

    enterprises (SMEs) using the 2007 Thai Industrial Census. The results from the

    estimations reveal that firm age, firm size, firm location in Bangkok, foreign

    investment, and government assistance are significantly and positively related to

    technical efficiency. Medium sized enterprises are also found to be more technically

    efficient than small sized enterprises. Focusing on SMEs exporting to different

    destinations SMEs exporting to OCEANIA perform the best, followed by SMEs

    exporting to ASEAN, East Asia, and North and South America, except SMEs

    exporting to Europe which have no significant effect upon technical efficiency, given

    SMEs to the rest of the world as the base exporting SME group. The results also

    reveal that SMEs in the chemicals and related products sector perform the best,

    followed by SMEs in the machinery and transport equipment sector, manufactured

    goods sector, and food, beverages and tobacco sector, given the miscellaneous

    manufactured articles sector as the base sector. The paper also provides useful

    evidence-based policy recommendations to enhance the technical efficiency and

    competitiveness of Thai manufacturing and exporting SMEs

UOW Authors


  •   Amornkitvikai, Yot (external author)
  •   Harvie, Charles
  •   Charoenrat, Teerawat (external author)

Publication Date


  • 2010

Citation


  • Amornkitvikai, Y., Harvie, C. & Charoenrat, T. (2010). Measuring technical efficiency: The case of Thai manufacturing and exporting small and medium size enterprises (SMEs). 7th SMEs in a Global Economy Conference: Challenges and Prospects (pp. 1-23). Malaysia: Pusat Penerbitan Universiti.

Start Page


  • 1

End Page


  • 23

Place Of Publication


  • http://www.smesconference2010.com/

Abstract


  • This paper employs stochastic frontier analysis (SFA) to analyse an inefficiency

    effects model for 3,894 Thai manufacturing and exporting small and medium size

    enterprises (SMEs) using the 2007 Thai Industrial Census. The results from the

    estimations reveal that firm age, firm size, firm location in Bangkok, foreign

    investment, and government assistance are significantly and positively related to

    technical efficiency. Medium sized enterprises are also found to be more technically

    efficient than small sized enterprises. Focusing on SMEs exporting to different

    destinations SMEs exporting to OCEANIA perform the best, followed by SMEs

    exporting to ASEAN, East Asia, and North and South America, except SMEs

    exporting to Europe which have no significant effect upon technical efficiency, given

    SMEs to the rest of the world as the base exporting SME group. The results also

    reveal that SMEs in the chemicals and related products sector perform the best,

    followed by SMEs in the machinery and transport equipment sector, manufactured

    goods sector, and food, beverages and tobacco sector, given the miscellaneous

    manufactured articles sector as the base sector. The paper also provides useful

    evidence-based policy recommendations to enhance the technical efficiency and

    competitiveness of Thai manufacturing and exporting SMEs

UOW Authors


  •   Amornkitvikai, Yot (external author)
  •   Harvie, Charles
  •   Charoenrat, Teerawat (external author)

Publication Date


  • 2010

Citation


  • Amornkitvikai, Y., Harvie, C. & Charoenrat, T. (2010). Measuring technical efficiency: The case of Thai manufacturing and exporting small and medium size enterprises (SMEs). 7th SMEs in a Global Economy Conference: Challenges and Prospects (pp. 1-23). Malaysia: Pusat Penerbitan Universiti.

Start Page


  • 1

End Page


  • 23

Place Of Publication


  • http://www.smesconference2010.com/