Abstract
Technical efficiency (TE) is an important indicator to examine the performance of an enterprise. This paper applies the most popular stochastic frontier (SF) production functions to estimate the TE index for state-owned enterprises (SOEs) over the period 2010–2019. The results show that mean efficiency scores increased over the period 2010–2015, then decreased gradually in the period 2016–2019. Moreover, the analysis results by industry sectors also indicate that chemical manufacturing industry has the highest mean efficiency scores. Meanwhile, enterprises in the automotive and equipment manufacturing industries have the lowest technical efficiency, and the difference between these two sectors is up to 10%. The paper also makes some recommendations to policy makers to improve production efficiency in these firms.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
