Research Information System
Scientific Research and Essays, vol.6, no.29, pp.6120-6131, 2011 (Scopus)
We examined the relative influence of preference of a stochastic metafrontier model to evaluate the technical efficiencies and meta-technology ratios of firms that may be classified into different regions but not have the same technology. The empirical application of the model used panel data set of six different regional firms in Bangladesh. We observed low mean technical efficiency scores 17.7%, 15.9, 13.4 and 26.9% for Dhaka, Chittagong, Rajshahi and Khulna regions respectively in Bangladesh. But these were found to be very high for Barisal and Sylhet regions. The mean values for the meta-technology ratio (MTR) imply that Sylhet regional firms produce, on the average, about 4% of the potential output given the technology available to the whole firm used for this study. Conversely, firms in Chittagong region produce, on the average, only about 1% of the potential output given the technology. Technical efficiency in firm's production is low, and meta-technology ratios played an important part in explaining ability of firms sector in one region to compete with other regions in Bangladesh. © 2011 Academic Journals.