Sectoral and spatio-temporal differentiation in technical efficiency

Abstract

In the literature, existing meta-regressions on efficiency have focused onspecific sectors in a country or multiple country and on specific economic activity.None of the available efficiency meta-regressions covers multiple sectors of aneconomy. We contribute to the literature by investigating the technical efficiencydifferentiation within a multi-sectoral environment. Using data from 152 publications yielding 223 observations from diverse sources and applying meta-regressionanalysis, we investigated the heterogeneity in mean technical efficiency (MTE),assessed the temporal and spatial drivers of estimated technical efficiency forGhana. We found heterogeneity in the estimated MTE. The selected cauchit functional form of the fractional regression model showed sectoral and spatial variablesdrive heterogeneity in MTE. There was a seeming technical efficiency regressionwith average MTE of 0.676 that requires greater effort in the management ofproduction than has been the case previously in order to close the output gap.