A Meta-Frontier Approach to Measure Productivity Differences of Domestic and Foreign Affiliated Firms

Abstract

This paper aims to evaluate the performance of foreign affiliated and domestic firms in Turkish manufacturing subsectors covering the period 1992 and 2001. Due to the heterogeneity between domestic and foreign affiliated firms in terms of technology level, we construct a meta-frontier model to measure relative efficiency and technology gap ratios (TGR's) of domestic and foreign affiliated firms. We find that technical efficiencies of foreign affiliated firms are higher than domestic firms, and display a stable pattern during the investigation period. However; technology gap ratios indicate the existence of a negative relationship between the TGR's and technical efficiency of the firms in domestic subsectors. This means that technically efficient firms are in fact using the low level of technology. However the results do not indicate any significant relationship between the technical efficiency and TGR's of foreign affiliated firms.

Agricultural Environmental Efficiency and Agricultural Environmental Kuznets Curve Based on Technological Gap: the Case of China

“…In order to address this problem, Hayami (1969) [24] fi rst came up with the concept of the meta-production function. In recent years, the concept of meta-constraints productivity index has been adopted in some literature in effi ciency calculations in various fi elds (Bo, 2012 [25]; Tunca, 2013 [26]; Wang, 2013 [27]; Susila, 2015 [28]; Yu, 2015 [29]; Zou, 2015 [30]). Among them, Wang Qunwei (2010) [31] and Liu Yuhai (2011) [32] employed the method to calculate regional (industrial) environmental effi ciency but, unfortunately, all of the literature neglected the effect of the differences in environmental technological constraints on the evaluation of agricultural environmental effi ciency.…”