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Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach

This study measured the level of technical efficiency (TE) that exerted a significant impact on the Malaysian electric and electronic manufacturing industry, which consists of 13 sub-industries, from 2010 to 2015. Unbalanced panel data from 1880 firms was obtained from the Department of Statistics M...

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Main Authors: Hashim, Norayati, Mohd Fahmy, Mohd Fahmy, Abdullah, Abdullah
Format: Article
Language:English
Published: 2024
Subjects:
HD Industries. Land use. Labor
Online Access:http://eprints.uthm.edu.my/11908/1/J17602_16870a63698a76983537b5f33092e9c6.pdf
http://eprints.uthm.edu.my/11908/
https://doi.org/10.55493/5002.v14i2.5008
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spelling my.uthm.eprints.119082024-12-23T01:12:16Z http://eprints.uthm.edu.my/11908/ Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach Hashim, Norayati Mohd Fahmy, Mohd Fahmy Abdullah, Abdullah HD Industries. Land use. Labor This study measured the level of technical efficiency (TE) that exerted a significant impact on the Malaysian electric and electronic manufacturing industry, which consists of 13 sub-industries, from 2010 to 2015. Unbalanced panel data from 1880 firms was obtained from the Department of Statistics Malaysia. We used stochastic frontier (SFA) analysis with the transcendental logarithmic approach to estimate the empirical analysis parametric. The maximum likelihood estimated regression of the SFA parameters revealed a high total average TE of 0.944%. Both the manufacturing subindustries for communications equipment (MSIC 263) and irradiation, electromedical, and electrotherapeutic equipment (MSIC 266) demonstrated the highest average TE value and consistency (0.989%). The consumer electronics manufacturing sub-industry (MSIC 264) yielded a notably lower TE level (0.846%). Changes in TE for all industries were monitored via standard deviation analysis. The low standard deviation (SD) for MSIC 263, 271, and 275 indicated continuous progress and demands for these industries, while the higher SD for MSIC 264, 266, 272, and 273 pointed out major changes that happened within the period. The findings demonstrated that studies on the TE levels indicate that the E&E manufacturing industry has highly expended and continuous efforts to update technologies and human capital innovations. Therefore, the practical implication is to achieve Sustainable Development Goal 9 for sustainable industrialization and fostering innovation by 2030. 2024 Article PeerReviewed text en http://eprints.uthm.edu.my/11908/1/J17602_16870a63698a76983537b5f33092e9c6.pdf Hashim, Norayati and Mohd Fahmy, Mohd Fahmy and Abdullah, Abdullah (2024) Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach. Asian Economic and Financial Review, 14 (2). pp. 88-104. ISSN 2222-6737 https://doi.org/10.55493/5002.v14i2.5008
institution Universiti Tun Hussein Onn Malaysia
building UTHM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tun Hussein Onn Malaysia
content_source UTHM Institutional Repository
url_provider http://eprints.uthm.edu.my/
language English
topic HD Industries. Land use. Labor
spellingShingle HD Industries. Land use. Labor
Hashim, Norayati
Mohd Fahmy, Mohd Fahmy
Abdullah, Abdullah
Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach
description This study measured the level of technical efficiency (TE) that exerted a significant impact on the Malaysian electric and electronic manufacturing industry, which consists of 13 sub-industries, from 2010 to 2015. Unbalanced panel data from 1880 firms was obtained from the Department of Statistics Malaysia. We used stochastic frontier (SFA) analysis with the transcendental logarithmic approach to estimate the empirical analysis parametric. The maximum likelihood estimated regression of the SFA parameters revealed a high total average TE of 0.944%. Both the manufacturing subindustries for communications equipment (MSIC 263) and irradiation, electromedical, and electrotherapeutic equipment (MSIC 266) demonstrated the highest average TE value and consistency (0.989%). The consumer electronics manufacturing sub-industry (MSIC 264) yielded a notably lower TE level (0.846%). Changes in TE for all industries were monitored via standard deviation analysis. The low standard deviation (SD) for MSIC 263, 271, and 275 indicated continuous progress and demands for these industries, while the higher SD for MSIC 264, 266, 272, and 273 pointed out major changes that happened within the period. The findings demonstrated that studies on the TE levels indicate that the E&E manufacturing industry has highly expended and continuous efforts to update technologies and human capital innovations. Therefore, the practical implication is to achieve Sustainable Development Goal 9 for sustainable industrialization and fostering innovation by 2030.
format Article
author Hashim, Norayati
Mohd Fahmy, Mohd Fahmy
Abdullah, Abdullah
author_facet Hashim, Norayati
Mohd Fahmy, Mohd Fahmy
Abdullah, Abdullah
author_sort Hashim, Norayati
title Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach
title_short Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach
title_full Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach
title_fullStr Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach
title_full_unstemmed Technical efficiency in the Malaysian electric and electronic manufacturing industry: A stochastic frontier analysis approach
title_sort technical efficiency in the malaysian electric and electronic manufacturing industry: a stochastic frontier analysis approach
publishDate 2024
url http://eprints.uthm.edu.my/11908/1/J17602_16870a63698a76983537b5f33092e9c6.pdf
http://eprints.uthm.edu.my/11908/
https://doi.org/10.55493/5002.v14i2.5008
_version_ 1819912400577495040
score 13.223943

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