Technical Efficiency and Export Determinants

The ability to export does not only depend on which input country has internally abundant but also on which input country can produce a relatively less expensive output due to a less opportunity cost. Exportation needs efficiency, since country always asked to be able to provide high quality and cheaper product in highly competitive export market, and at the same time it is required as well to satisfy a complex international consumer demands. Countries can be said to succeed in enjoying profit and surviving within the market if they are identified to be efficient enough. Otherwise, they will be forced to exit from the market. This book will explore the Indonesian manufacturing case, focusing in measuring the relative efficiency of the industry (in term of technical efficiency) and analyzing the determinants of Indonesia’s manufacturing export performance. The analyses are carried out using two different models, i.e. Data Envelopment Analysis (DEA) and Panel Analytic Model. The book’s elaboration should be useful for professional economist, economic students or researcher that put their interest on the export and productivity fields in developing countries.