Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis
Drawing on the significance of firm efficiency in attaining the primary firms’ goal of profit maximization, the paper aims to examine the firm efficiency or technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) level in the selected East Asia countries during the perio...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/16089/1/10%29%20Firm%20Efficiency.pdf |
| _version_ | 1825945748355678208 |
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| author | Tan, Khar Mang Kamarudin, Fakarudin Amin Noordin, Bany Ariffin Abdul Rahim, Norhuda |
| author_facet | Tan, Khar Mang Kamarudin, Fakarudin Amin Noordin, Bany Ariffin Abdul Rahim, Norhuda |
| author_sort | Tan, Khar Mang |
| collection | UPM |
| description | Drawing on the significance of firm efficiency in attaining the primary firms’ goal of profit maximization, the paper aims to examine the firm efficiency or technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) level in the selected East Asia countries during the period of 2009-2015, by employing the non-parametric Data Envelopment Analysis (DEA) based on the production approach. The efficiency level of firms in selected East Asia countries is found to be moderate, by experiencing the mean TE of 53.40per cent with input waste of 46.60per cent during the years 2009-2015. The paper find that the scale inefficiency (SIE) is the dominant source of inefficiency of firms. Furthermore, the paper reveals that the large firms are generally showed decreasing return to scale (DRS); while the small firms are commonly exhibited increasing return to scale (IRS). Finally, the paper concludes that the firms in selected developed countries are found to exhibit higher mean TE than those firms in selected developing countries. |
| first_indexed | 2024-03-06T07:36:18Z |
| format | Article |
| id | upm.eprints-16089 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:36:18Z |
| publishDate | 2018 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| record_format | dspace |
| spelling | upm.eprints-160892019-11-12T06:53:40Z http://psasir.upm.edu.my/id/eprint/16089/ Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis Tan, Khar Mang Kamarudin, Fakarudin Amin Noordin, Bany Ariffin Abdul Rahim, Norhuda Drawing on the significance of firm efficiency in attaining the primary firms’ goal of profit maximization, the paper aims to examine the firm efficiency or technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE) level in the selected East Asia countries during the period of 2009-2015, by employing the non-parametric Data Envelopment Analysis (DEA) based on the production approach. The efficiency level of firms in selected East Asia countries is found to be moderate, by experiencing the mean TE of 53.40per cent with input waste of 46.60per cent during the years 2009-2015. The paper find that the scale inefficiency (SIE) is the dominant source of inefficiency of firms. Furthermore, the paper reveals that the large firms are generally showed decreasing return to scale (DRS); while the small firms are commonly exhibited increasing return to scale (IRS). Finally, the paper concludes that the firms in selected developed countries are found to exhibit higher mean TE than those firms in selected developing countries. Faculty of Economics and Management, Universiti Putra Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/16089/1/10%29%20Firm%20Efficiency.pdf Tan, Khar Mang and Kamarudin, Fakarudin and Amin Noordin, Bany Ariffin and Abdul Rahim, Norhuda (2018) Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis. International Journal of Economics and Management, 12 (spec. 2). pp. 431-442. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol12_noS2/10)%20Firm%20Efficiency.pdf |
| spellingShingle | Tan, Khar Mang Kamarudin, Fakarudin Amin Noordin, Bany Ariffin Abdul Rahim, Norhuda Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis |
| title | Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis |
| title_full | Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis |
| title_fullStr | Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis |
| title_full_unstemmed | Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis |
| title_short | Firm efficiency in selected developed and developing East Asia countries: using data envelopment analysis |
| title_sort | firm efficiency in selected developed and developing east asia countries using data envelopment analysis |
| url | http://psasir.upm.edu.my/id/eprint/16089/1/10%29%20Firm%20Efficiency.pdf |
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