Unleashing the association between technical efficiency of agro- processing industry and economic growth: A pathway towards development sustainability

Abstract

AbstractUnder the influence of market rules, state intervention in development process is obviously necessary, especially in the context of emerging countries with an incomplete and non-mordern market economy toward the global race of sustainability. Applying 2590 enterprises covering 63 provinces and cities in the General Statistics Office, this study aims to evaluate the influence of state on the technical efficiency of enterprises. A fractional regression analysis model is employed purposefully since the technical efficiency of the dependent variable is an estimated randomly variable. The research findings unequivocally indicate a substantial influence of the state on the technical efficiency of livestock product processing companies. Moreover, when studying each specific aspect in isolation to gauge the role of the state, a discernible negative impact is evident on the technical efficiency of these enterprises. Consequently, this study implies that for tangilbe improvements in the technical efficiency of enterprises, the state should adopt a comprehensive approach, simultaneously implementing all aspects that demonstrate its role in the sector. By adopting such a holistic strategy, the state can create a more conducive environment toward development sustainability for improving the technical efficiency of livestock product processing enterprises.