Export orientation and technical efficiency: clothing firms in China |
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| Authors: | Vincent Mok Godfrey Yeung Zhaozhou Han Zongzhang Li |
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| Institution: | 1. School of Accounting and Finance, Hong Kong Polytechnic University, Hung Hom, Hong Kong;2. Department of Geography, National University of Singapore, Singapore;3. Department of Statistics, Jinan University, Guangzhou, China;4. School of Economics and Management, South China Agricultural University, Guangzhou, China |
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| 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. |
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