Technical Efficiency Analysis of the Kenya Agro-Processing Industry

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dc.contributor.authorNdicu, N. Simon
dc.contributor.authorNgui, D. Muchai
dc.contributor.authorGachanja, P. Mwangi
dc.date.accessioned2022-06-03T07:58:45Z
dc.date.available2022-06-03T07:58:45Z
dc.date.issued2016-05
dc.descriptionA Research Article in the The International Journal Of Business & Managementen_US
dc.description.abstractThis study sought to provide empirical evidence on technical efficiency levels and trend of the Kenya Agro-processing industry. The major problem of the industry is that it has been under performing in terms of value addition and Kenya is known to be a net exporter of primary agricultural produce instead of high-quality value-added products. This study sought to determine the efficiency estimates of the industry and analyzed the trend in efficiency changes. Panel data covering three years (2011, 2012, and 2013) for 41 firms in this industry was collected from the Kenya National Bureau of Statistics (KNBS). Econometric production frontiers were estimated in each period. The findings showed that the industry had an overall efficiency score of 44 percent. The efficiency score was distributed as 53 percent, 60 percent and 57 percent for the food, beverage, and non-food subsectors. This study concluded that an average 56 percent technical potentiality was not achieved by the industry in the period 2011, 2012 and 2013. This study recommends that the policy export promotion of locally processed products of the Kenyan government should be complemented with an industrial policy that enhances the technical efficiency of local exporting firms to increase international competition of Kenyan manufacturers.en_US
dc.identifier.citationNdicu, N.S., Ngui. D.M. and Gachanja, P.M. (2016): Technical Efficiency Analysis of the kenyan Agro-processing Industry. The International Journal of Business and Management, 4:5 Pp. 100-109.en_US
dc.identifier.issn2321–8916
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/23792
dc.language.isoenen_US
dc.publisherThe International Journal Of Business & Managementen_US
dc.subjectEfficiency measureen_US
dc.subjectAgro-processingen_US
dc.subjectStochastic production frontier functionen_US
dc.subjectDecision making uniten_US
dc.titleTechnical Efficiency Analysis of the Kenya Agro-Processing Industryen_US
dc.typeArticleen_US
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