We estimate technical efficiency(TE) for Korean and Gyeonggi manufacturing industries on the classification of enterprise-location: planned location and footloose location. The empirical analyses are carried by using stochastic frontier model. The num...
We estimate technical efficiency(TE) for Korean and Gyeonggi manufacturing industries on the classification of enterprise-location: planned location and footloose location. The empirical analyses are carried by using stochastic frontier model. The number of samples in Korea(Gyeonggi) is 51,936(18,173) in 2004, 55,120(19,784) in 2005 and 56,368(20,446) in 2006. The main results are as follows. In Korea (i) TE of manufacturing industries in planned location is higher than that in footloose location; and (ii) TE is decreased over time, and such a phenomenon is larger in footloose location than planned location. In Korean, (iii) Gyeonggi manufacturing industries in planned location have very high TE; and (iv) Gyeonggi manufacturing industries have relatively high TE over time and such a phenomenon is larger in planned location than footloose location.