•  
  •  
 

Abstract

This study examines the effect of export activity on the technical inefficiency by using firm level panel data taken from Annual Survey of Manufacturing conducted by BPS for the period 2010 to 2014 and focus on Indonesia’s mainstay export industry which classified into low technology and high technology sector. A stochastic frontier model with one stage approach is applied to the translog production function to estimate firm level technical efficiency. The findings support the theoretical implications of the positive impact of export activities on firm’s efficiency and low technology sectors have higher efficiency rate than high technology sectors.

Bahasa Abstract

Penelitian ini meneliti bagaimana pengaruh aktivitas ekspor terhadap inefisiensi teknis pada industri andalan ekspor Indonesia dengan menggunakan data level perusahaan yang bersumber dari Survei Industri Besar Sedang BPS periode 2010 sampai dengan 2014. Penelitian ini menggunakan model stochastic frontier dengan one step approach yang diterapkan pada fungsi produksi translog. Hasil dari penelitian ini adalah aktivitas ekspor berpengaruh terhadap tingkat efisiensi perusahaan, yang mana industri yang tergolong dalam industri dengan tingkat teknologi rendah memiliki tingkat inefisiensi yang lebih rendah dibandingkan industri dengan tingkat teknologi tinggi.

References

[1] Aigner, D., Lovell, C. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1), 21–37. doi: https://doi.org/10.1016/0304-4076(77)90052-5.

[2] Battese, G. E., & Broca, S. S. (1997). Functional forms of stochastic frontier production functions and models for technical inefficiency effects: a comparative study for wheat farmers in Pakistan. Journal of Productivity Analysis, 8(4), 395–414. doi: https://doi.org/10.1023/A:1007736025686.

[3] Battese, G. E., & Coelli, T. J. (1995). A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics, 20(2), 325–332. doi: https://doi.org/10.1007/BF01205442.

[4] BPS. (2015). Jumlah perusahaan industri besar sedang menurut subsektor (2 digit KBLI), 2000-2015. Badan Pusat Statistik. Diakses 14 September 2017 dari https://www.bps.go.id/dynamictable/2015/09/14/896/ jumlah-perusahaan-industri-besar-sedang-menurutsubsektor- 2-digit-kbli-2000-2015.html.

[5] BPS. (2017). Jumlah tenaga kerja industri besar dan sedang menurut sub sektor, 2008-2015. Badan Pusat Statistik. Diakses 14 September 2017 dari https://www.bps.go.id/statictable/2011/02/14/1063/ jumlah-tenaga-kerja-industri-besar-dan-sedang-menurutsubsektor- 2000-2015.html.

[6] Calmasur, G. (2016). Technical efficiency analysis in the automotive industry: A stochastic frontier approach. International Journal of Economics, Commerce and Management, 4(4), 120–137.

[7] Castiglione, C. (2012). Technical efficiency and ICT investment in Italian manufacturing firms. Applied Economics, 44(14), 1749–1763. doi: https: //doi.org/10.1080/00036846.2011.554374.

[8] Charoenrat, T., & Harvie, C. (2014). The efficiency of SMEs in Thai manufacturing: A stochastic frontier analysis. Economic Modelling, 43, 372–393. doi: https: //doi.org/10.1016/j.econmod.2014.08.009.

[9] Chu, S. N., & Kalirajan, K. (2011). Impact of trade liberalisation on technical efficiency of Vietnamese manufacturing firms. Science, Technology and Society, 16(3), 265–284. doi: https://doi.org/10.1177%2F097172181101600302.

[10] Coelli, T. J., Rao, D. S. P., O’Donnell, C. J., & Battese, G. E. (2005). An introduction to efficiency and productivity analysis (2nd edition). Springer Science & Business Media.

[11] De Jorge-Moreno, J., & Rojas Carrasco, O. (2015). Technical efficiency and its determinants factors in Spanish textiles industry (2002-2009). Journal of Economic Studies, 42(3), 346– 357. doi: https://doi.org/10.1108/JES-06-2013-0085.

[12] Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society: Series A (General), 120(3), 253–281. doi: https://doi.org/10.2307/2343100.

[13] Heathfield, D. F. (1972). The measurement of capital usage using electricity consumption data for the UK. Journal of the Royal Statistical Society: Series A (General), 135(2), 208–220. doi: https://doi.org/10.2307/2344318.

[14] Kalirajan, K. P., & Shand, R. T. (1999). Frontier production functions and technical efficiency measures. Journal of Economic Surveys, 13(2), 149–172. doi: https://doi.org/10.1111/1467- 6419.00080.

[15] Khalifah, N. A. (2013). Ownership and technical efficiency in Malaysia’s automotive industry: A stochastic frontier production function analysis. The Journal of International Trade & Economic Development, 22(4), 509–535. doi: https://doi.org/10.1080/09638199.2011.571702.

[16] Kumbhakar, S. C., Ortega-Argiles, R., Potters, L., Vivarelli, M., & Voigt, P. (2012). Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors. Journal of Productivity Analysis, 37(2), 125–140. doi: https://doi.org/10.1007/s11123-011-0223-5.

[17] Le, V., & Valadkhani, A. (2014). Are exporting manufacturing SMEs more efficient than non-exporting ones? Evidence from Australia’s business longitudinal database. Economic Analysis and Policy, 44(3), 310–317. doi: https: //doi.org/10.1016/j.eap.2014.07.002.

[18] Lestari, E. P. (2007). Disparitas efisiensi teknis antar sub sektor dalam industri manufaktur di Indonesia, aplikasi Data Envelopment Analysis. Jurnal Organisasi dan Manajemen, 3(1), 10–26.

[19] Levinsohn, J., & Petrin, A. (2003). Estimating production functions using inputs to control for unobservables. The Review of Economic Studies, 70(2), 317–341. doi: https://doi.org/10.1111/1467-937X.00246.

[20] Margono, H., & Sharma, S. C. (2006). Efficiency and productivity analyses of Indonesian manufacturing industries. Journal of Asian Economics, 17(6), 979–995. doi: https: //doi.org/10.1016/j.asieco.2006.09.004.

[21] Meeusen, W., & van Den Broeck, J. (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International Economic Review, 18(2), 435–444. doi: 10.2307/2525757.

[22] Mok, V., Yeung, G., Han, Z., & Li, Z. (2010). Export orientation and technical efficiency: clothing firms in China. Managerial and Decision Economics, 31(7), 453–463. doi: https://doi.org/10.1002/mde.1500.

[23] Murillo-Zamorano, L. R. (2004). Economic efficiency and frontier techniques. Journal of Economic Surveys, 18(1), 33–77. doi: https://doi.org/10.1111/j.1467-6419.2004.00215.x.

[24] Pindyck, R. S., & Rubinfeld, D. L. (2005). Microeconomics (5th Edition). Prentice Hall.

[25] Prabowo, H. E., & Cabanda, E. (2011). Stochastic frontier analysis of Indonesian firm efficiency: A note. International Journal of Banking and Finance, 8(2), 74–91.

[26] Saputra, P. M. A. (2014). Technical efficiency and export performance: evidence for self-selection hypothesis from Indonesian manufacturing sector-level data. International Journal of Economic Policy in Emerging Economies, 7(4), 383– 398. doi: https://doi.org/10.1504/IJEPEE.2014.066625.

[27] Schiersch, A. (2013). Firm size and efficiency in the German mechanical engineering industry. Small Business Economics, 40(2), 335–350. doi: https://doi.org/10.1007/s11187-012-9438- 8.

[28] Setiawan, M., Emvalomatis, G., & Lansink, A. O. (2012). The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry. Journal of Asian Economics, 23(4), 466- 475. doi: https://doi.org/10.1016/j.asieco.2012.01.002.

[29] Soderbom, M., & Teal, F. (2004). Size and efficiency in African manufacturing firms: evidence from firm-level panel data. Journal of Development Economics, 73(1), 369–394. doi: https://doi.org/10.1016/j.jdeveco.2003.02.005.

[30] Suyanto, & Salim, R. (2011). Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence. Applied Economics, 45(3), 383–395. doi: https://doi.org/10.1080/00036846.2011.605554.

[31] Suyanto, Salim, R. A., & Bloch, H. (2009). Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia. World Development, 37(12), 1861– 1876. doi: https://doi.org/10.1016/j.worlddev.2009.05.009.

[32] UNIDO. (2015). Industrial Development Report 2016: The role of technology and innovation in inclusive and sustainable industrial development. United Nations Industrial Development Organization. Diakses 26 Juli 2017 dari https://www.unido.org/sites/default/files/2015-12/ EBOOK IDR2016 FULLREPORT 0.pdf.

[33] Vu, H. D. (2016). Technical efficiency of FDI firms in the Vietnamese manufacturing sector. Review of Economic Perspectives, 16(3), 205–230. doi: 10.1515/revecp-2016-0013.

[34] Wang, H. J., & Schmidt, P. (2002). One-step and two-step estimation of the effects of exogenous variables on technical efficiency levels. Journal of Productivity Analysis, 18(2), 129– 144. doi: https://doi.org/10.1023/A:1016565719882.

Included in

Economics Commons

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.