Analyzing technical efficiency in Vietnamese seafood processing firms: A semi-parametric stochastic frontier approach

Abstract

This research aims to estimate and analyze the technical efficiency of Vietnamese seafood processing firms by applying the semi-parametric stochastic frontier model and Tobit regression. The data used in this study is a panel sample of 170 Vietnamese seafood processing firms in the period from 2013 to 2018. It is collected from enterprise census data of the General Statistics Office of Vietnam and provincial competitiveness index data of the Vietnam Chamber of Commerce and Industry. The estimated results show that: The scores of technical efficiency of firms averaged 0.712 and there was a decline during the study period. There is still plenty of room for technical efficiency in firms; The gap in technical efficiency in firms is still large and there is a strong difference in efficiency between firm’s ownerships and firm sizes; Firms with export activities, large scale, foreign direct investment capital, and low equity restrictions will have a positive impact on technical efficiency; However, there is no evidence to show the impact of the firm’s age and firm located in industrial zones factors on the efficiency of firms. In addition, the institutional quality and business environment also have an impact on the performance of firms.