A COMPARATIVE ANALYSIS OF EFFICIENCY IN IRAN'S PROVINCIAL MANUFACTURING SECTOR

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HAKIMIPOUR N.; HOZHBAR KIANI K.

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Journal: KNOWLEDGE AND DEVELOPMENT Year:2008 | Volume:15 | Issue:24 Page(s): 133-161

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Information Journal Paper

Title

A COMPARATIVE ANALYSIS OF EFFICIENCY IN IRAN'S PROVINCIAL MANUFACTURING SECTOR

Author(s)

HAKIMIPOUR N. | HOZHBAR KIANI K. | Issue Writer Certificate

Keywords

EFFICIENCYQ2

TECHNICAL EFFICIENCYQ3

STOCHASTIC FRONTIER FUNCTIONQ3

NON- PARAMETRIC AND PARAMETRIC APPROACHESQ3

MANUFACTURING INDUSTRYQ3

Abstract

The purpose of this paper is to measure technical EFFICIENCY of the manufacturing sector in Iran's provinces during the period 1991-2004 This analysis focuses on regional comparisons of manufacturing performance and the determinants of technical EFFICIENCY among the provinces. The approach used to measure EFFICIENCY is stochastic frontier model from battese and coelli (1995) to explore the determinants of the technical EFFICIENCY. The summery results show the EFFICIENCY levels in the manufacturing are low. The average annual EFFICIENCY level for the manufactories of provinces is 0.374 and the average annual growth in technical EFFICIENCY is 1.1 percent over the period 1991-2004. Although the average level of the technical EFFICIENCY has been low, some provinces have enjoyed a substantial performance in this regard. The highest technical EFFICIENCY level recorded is of Khozestan province with 0.76 and the lowest is in Sistan Balouchestan province with 0.199. Surveying effective factors impacting in EFFICIENCY, two factors of government ownership of industrial units and energy intensity have negative (positive) impact and enterprise size (average value added of a industrial unit) has the positive (negative) impact on EFFICIENCY (inEFFICIENCY). The research also shows that provinces such as Boushehr and Hormozgan, have higher EFFICIENCY in average comparing mega-industrial provinces and have been experiencing higher industrial EFFICIENCY rate in the last years of the studied period. All in all, the most important policy recommendation which can be presented based on the research is that given the low EFFICIENCY level in huge industrial sector, EFFICIENCY increase can be attainable through economic management empowerment of public industrial enterprises and optimum allocation of production factors in the sector.

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APA: Copy

HAKIMIPOUR, N., & HOZHBAR KIANI, K.. (2008). A COMPARATIVE ANALYSIS OF EFFICIENCY IN IRAN'S PROVINCIAL MANUFACTURING SECTOR. KNOWLEDGE AND DEVELOPMENT, 15(24), 133-161. SID. https://sid.ir/paper/75741/en

Vancouver: Copy

HAKIMIPOUR N., HOZHBAR KIANI K.. A COMPARATIVE ANALYSIS OF EFFICIENCY IN IRAN'S PROVINCIAL MANUFACTURING SECTOR. KNOWLEDGE AND DEVELOPMENT[Internet]. 2008;15(24):133-161. Available from: https://sid.ir/paper/75741/en

IEEE: Copy

N. HAKIMIPOUR, and K. HOZHBAR KIANI, “A COMPARATIVE ANALYSIS OF EFFICIENCY IN IRAN'S PROVINCIAL MANUFACTURING SECTOR,” KNOWLEDGE AND DEVELOPMENT, vol. 15, no. 24, pp. 133–161, 2008, [Online]. Available: https://sid.ir/paper/75741/en

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