@techreport{185492b0a82e11dc9bb5000ea68e967b,
title = "Determinants of Firm-level Technical Efficiency: Evidence Using Stochastic Frontier Approach",
abstract = "By estimating stochastic frontiers we investigate the determinants and dynamics of firm efficiency. We use a representative sample of Estonian firms for the period 1993-1999 – and are able to address problems that plague much previous work, such as the endogeneity of ownership. Our main findings are that: (i) foreign ownership increases technical efficiency; (ii) firm size and higher labor quality enhance efficiency, while soft budget constraints adversely affect efficiency; (iv) Estonian firms operate under constants returns to scale; (v) the percentage of firms operating at high levels of efficiency increases over time. As such our findings provide support for hypotheses that a firm{\textquoteright}s ownership structure and its characteristics such as firm size, labor quality, soft budget constraints and time of privatization are important for its technical efficiency.",
keywords = "Stochastic frontier, Technical efficiency, Soft budget constraints, Ownership structure, Stochastic frontier, Technical efficiency, Soft budget constraints, Ownership structure",
author = "Evis Sinani and Jones, {Derek C.} and Niels Mygind",
year = "2007",
language = "English",
series = "Working Paper / Department of International Economics and Management, Copenhagen Business School",
publisher = "Department of International Economics and Management, Copenhagen Business School",
number = "7-2007",
type = "WorkingPaper",
institution = "Department of International Economics and Management, Copenhagen Business School",
}