Efficiency Convergence on Indonesian Manufacturing Industry
D.W. Sari, Z. Yasin & H.A.T. Islamia

Universitas Airlangga, Surabaya, Indonesia

Abstract

Evidence of efficiency levels and convergence are considered of importance in assessing the competitiveness of manufacturing industries. This paper evaluates the technical efficiency and convergence of Indonesian manufacturing industries using stochastic frontier analysis (SFA) by observing 24 subsectors of manufacturing industries. Results seem to provide supporting evidence of convergence of efficiency levels on 54% of Indonesian manufacturing industries.

Keywords: Efficiency Convergence, Stochastic Frontier Analysis, Manufacturing Industry

Topic: Innovation, IT, Operations and Supply Chain Management