Privatization and regional agglomeration effect on technical efficiency of Bangladesh manufacturing industry

• Main Authors: Baten, Md Azizul, Rana, Masud, Das, Sumonkanti, Nesa, Kamarun
• Format: Article
• Language: English
• Published: 2007
• Subjects: HD28 Management. Industrial Management; TS Manufactures
• Online Access: http://repo.uum.edu.my/10631/1/7.pdf; http://repo.uum.edu.my/10631/; https://www.econbiz.de/Record/privatization-and-regional-agglomeration-effect-on-technical-efficiency-of-bangladesh-manufacturing-industry-baten-azizul/10003584728

This paper examines how far private investment in manufacturing industries of Bangladesh, together with the spatial agglomeration of those industries affect technical efficiency over the period 1981-82 through 1999-2000 using a panel data.Using the Translog stochastic frontier model outlined by (Huang and Liu, 1994:171) we found that private and foreign investment play an important role in explaining technical inefficiency, whereas impact of agglomeration is negligible.The paper also explored whether the degree of private investment has a greater impact on technical efficiency where the domestic industry is characterized by comparatively high productivity.The mean technical efficiency in the period analyzed was estimated to be 56.8%.