Abstract
This paper examines the efficiency performance of exporting versus non-exporting manufacturing small and medium enterprises (SMEs) using the Business Longitudinal Database compiled by the Australian Bureau of Statistics for the period 2005–2006. The results from an analysis of 543 manufacturing SMEs indicate that overall manufacturing SMEs improved their technical efficiency levels over time, particularly the exporting ones nearly reaching 80%. Among firms of the same size and the same narrowly defined industry, we found that the non-exporting SMEs tended to have lower efficiency levels compared to their exporting counterparts. One may attribute these efficiency differences to the inclusion of more exporting firms in the database and/or the better use of production technology by exporting SMEs. This paper calls for a focus on improving SME efficiency performance as an effective way to enhance their success in global export markets by pursuing a number of initiatives/programs already implemented in other OECD countries.
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