Export orientation and technical efficiency: clothing firms in China

Abstract

Based on 287 of the largest clothing manufacturing firms in southern China in terms of output value, we employed data envelopment analysis to estimate the technical efficiency of the sample firms. A regression analysis was conducted to examine the effects of export orientation on technical efficiency. Our results suggest a U-shaped relationship between export ratio and technical efficiency. The specific nature of the industry in Guangdong province can explain that clothing firms with a high degree of sales in the domestic market or with a high level of export orientation experience a higher level of technical efficiency than those firms trying to conquer both the local and the overseas markets. Copyright © 2010 John Wiley & Sons, Ltd.

Does competition and foreign investment spur industrial efficiency?: firm-level evidence from Indonesia

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Determinants of exports performance: Evidence from Indonesian low-, medium-, and high-technology manufacturing industries

“…Taking destination into account has therefore brought to light more understanding of the t nexus between exports and efficiency. In the case of the Chinese clothing industry, a significant U-shaped nexus exists between efficiency level and export orientation, as observed by [ 46 ]. With a large extent of export orientation and experience and high sales in the domestic markets industry, specific effects can explain clothing firms in the Chinese Guangdong province.…”

Major Apparel Exporting Countries in Asia: A Study of Technical Efficiency and Its Determinants

“…For the minimum number of decision-making units required for discrimination between efficient and inefficient performers, there is no fixed rule of thumb, three times the number of inputs is acceptable (Sarkis, 2007). DEA has been used extensively to study efficiency in apparel sector (Gambhir & Sharma, 2017; Joshi & Singh, 2012; Mok et al, 2010; Vixathep & Matsunaga, 2012a, 2012b). Given that technical efficiency is to be measured using traditional input–output variables, the widely used and time-tested Banker, Charnes, and Cooper model is applied under input orientation.…”

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