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Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census

The implementation of privatization and Structural Adjustment Programs in Zambia saw the contribution of manufacturing in GDP significantly reduce from 37.2 percent in 1992 to 8.2 percent in 2013. Efforts to revamp manufacturing have not delivered to expectations and the industrial base has continue...

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Main Author: Kapya, David
Other Authors: Black, Anthony
Format: Thesis
Language:English
Published: School of Economics 2017
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access_status_str Open Access
author Kapya, David
author2 Black, Anthony
author_browse Black, Anthony
Kapya, David
author_facet Black, Anthony
Kapya, David
author_sort Kapya, David
collection Thesis
description The implementation of privatization and Structural Adjustment Programs in Zambia saw the contribution of manufacturing in GDP significantly reduce from 37.2 percent in 1992 to 8.2 percent in 2013. Efforts to revamp manufacturing have not delivered to expectations and the industrial base has continued to be smaller than it used to be in the 1970s and 1980s. This has raised serious questions about suitable industrialization policies not only for Zambia but for other African countries as well. This study examines the agro-processing industry with a view to establish whether it can drive the development of Zambia's manufacturing. We start by exploring the growth opportunities and highlighting the key sectors of comparative advantage. Thereafter, we apply the Data Envelopment Analysis algorithm to construct measures of technical and scale efficiency for a sample of 115 firms using the 2011/2012 Economic Census data. Finally, we examine the effect of firm attributes on the firm's technical and scale efficiency using the Tobit regression model. The results reveal that there are sufficient growth opportunities in Zambia's agro-processing industry, but the industry is highly inefficient. The average technical efficiency was 42.5 percent while scale efficiency was 81.7 percent. The study also shows that firm efficiency is affected by firm size, the size of the firm's market share, labour costs, and location of the firm.
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provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2017
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spelling oai:open.uct.ac.za:11427/23415 Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census Kapya, David Black, Anthony Economics Economic Development The implementation of privatization and Structural Adjustment Programs in Zambia saw the contribution of manufacturing in GDP significantly reduce from 37.2 percent in 1992 to 8.2 percent in 2013. Efforts to revamp manufacturing have not delivered to expectations and the industrial base has continued to be smaller than it used to be in the 1970s and 1980s. This has raised serious questions about suitable industrialization policies not only for Zambia but for other African countries as well. This study examines the agro-processing industry with a view to establish whether it can drive the development of Zambia's manufacturing. We start by exploring the growth opportunities and highlighting the key sectors of comparative advantage. Thereafter, we apply the Data Envelopment Analysis algorithm to construct measures of technical and scale efficiency for a sample of 115 firms using the 2011/2012 Economic Census data. Finally, we examine the effect of firm attributes on the firm's technical and scale efficiency using the Tobit regression model. The results reveal that there are sufficient growth opportunities in Zambia's agro-processing industry, but the industry is highly inefficient. The average technical efficiency was 42.5 percent while scale efficiency was 81.7 percent. The study also shows that firm efficiency is affected by firm size, the size of the firm's market share, labour costs, and location of the firm. 2017-01-26T13:39:52Z 2017-01-26T13:39:52Z 2016 Master Thesis Masters MCom http://hdl.handle.net/11427/23415 eng application/pdf School of Economics Faculty of Commerce University of Cape Town
spellingShingle Economics
Economic Development
Kapya, David
Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census
thesis_degree_str Master's
title Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census
title_full Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census
title_fullStr Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census
title_full_unstemmed Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census
title_short Technical and scale efficiency in Zambia's agro-progressing industry: a firm level data envelope analysis of the 2011/2012 manufacturing census
title_sort technical and scale efficiency in zambia s agro progressing industry a firm level data envelope analysis of the 2011 2012 manufacturing census
topic Economics
Economic Development
url http://hdl.handle.net/11427/23415
work_keys_str_mv AT kapyadavid technicalandscaleefficiencyinzambiasagroprogressingindustryafirmleveldataenvelopeanalysisofthe20112012manufacturingcensus