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Article
Author(s)
NTO PHILIPS O.O, MBANASOR J.A, IGBERI CHRISTIANA O
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DOI:10.17265/1537-1514/2012.10.007
Affiliation(s)
NTO PHILIPS O.O, Ph.D., Senior Lecturer, College of Agribusiness and Financial Management, Michael Okpara University of Agriculture.
MBANASOR J.A, Professor, College of Agribusiness and Financial Management, Michael Okpara University of Agriculture.
IGBERI CHRISTIANA O, Lecturer, Department of Agricultural Economics, Management and Extension, Ebonyi State University.
ABSTRACT
The paper examined the determinants of productivity among manufacturing firms in south-eastern Nigeria. The study adopted cross sectional data obtained from 120 manufacturing firms which were operational by 2011 production season. The data were analysed with Cobb-Douglas functional form of the stochastic frontier using FRONTIER 4.1 programme. The results indicated that the major determinants of productivity are amount spent on unskilled labour, cost of raw materials, and net productive asset with all exhibiting expected positive influence on productivity at 1% probability level respectively. Variables like registration status and years of operation have direct influence on the technical efficiency of the firm while size of firm had negative relationship with technical efficiency against conventional view. The mean technical efficiency level was 75% while about 76% of the firms operated above 60% technical efficiency level. The minimum and maximum technical efficiency levels were 13.36% and 96.7% respectively. In order to increase productivity, most of the manufacturing firms need to increase their efficiency level under their existing resources thereby enhancing their productivity. It is also recommended that manufacturing firms should increase their raw material input level through bulk purchase among others.
KEYWORDS
determinants, productivity, south-eastern, Cobb-Douglas, frontier
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