Firm size, age and efficiency: Evidence from Kenyan manufacturing firms

Abstract

Translog stochastic frontier production functions are estimated using an unbalanced panel of 235 Kenyan manufacturing firms in the food, wood, textile and metal sectors. The sectors are estimated individually in order to investigate whether technical efficiency is systematically related to the size and age of firms. The evidence suggests that firm size has a positive and significant effect in the wood and textile sectors. The age effect is less systematic, but is insignificant in all sectors, except textiles.

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