Table 3

Estimates for parameters of stochastic production frontier and technical inefficiency

VariableAll sampleSub1 (food, beverage)Sub2 (garment, textile)Sub3 (paper, printing)Sub4 (chemical, plastic)Sub5 (furniture, electronic, others)
Stochastic production frontier model (dependent variable: logY)
Constant−0.095−5.680*4.1470.336−1.31142.854
logK0.711***  0.858**0.8715**0.766**
logM0.657***1.469***  0.6245* 
logL1.617***2.337***2.000***2.628** 1.478**
log(K)2      
log(M)2   0.046**  
log(L)2−0.056*    −0.167***
log(KxM)−0.035***−0.028* −0.056*−0.066** 
log(KxL)   0.133*  
log(MxL)−0.061**  −0.304  
Technical inefficiency model (dependent variable: logu) 
Constant1.5179−2.15800.91661.1929 1.6683*
FirmSize−0.7472*     
lnage      
Edu_manager   −0.9578*  
Foreign_own      
Export   −1.8559***  
Account−0.2502*    −0.5638**
Credit−0.7600***−0.9849**−1.0509**   
IT      
Sub11.1391***     
Sub21.0972***     
Sub30.6415**     
Sub40.4724**     
Province1−1.304***−2.2676**    
Province2   2.5082**  
Province9−1.3444**    −1.7828*
Province10−0.5161*     
Province11−0.9537**     
Province15   3.8078*  
Province16−0.8691**−2.1036**    
Gamma (γ)0.96580.95560.94210.97220.11100.9700
Log likelihood−2570.00−852.36−200.87−213.63−704.69−518.35
Mean efficiency0.72510.71490.59120.54401.00000.6471
H0: No inefficiency component (Prob > χ2)0.00000.03800.00000.00100.74300.0000
Number of observations2,009618190183578440

Note(s): ***, ** and * denote significance at the 1, 5 and 10% level, respectively

Note that the variables of location by province are not all reported; only the ones with a significant statistical test for all samples are displayed to save space

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