Abstract
An unbalanced panel is used to estimate technical and managerial efficiency levels of manufacturing firms in Cote d’Ivoire. A stochastic frontier production model with non-neutral effects on technical efficiency of the business environment variables is specified. This specification allows to evaluate and to compare technical efficiencies and efficiency levels net of business environment influences. In order to determine net efficiency levels in the non-neutral case, a practical method based on the definition of an artificial environment is proposed. Results suggest that informal firms are less technically efficient than formal firms whereas their managerial performances are closed to those of formal firms.
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