Artículo: Laborda, Sotelsek, Vélez (2012).African Journal of Business Management Vol. 6(6), pp. 2361-2374,15 February, 2012
Second hand machinery and technical efficiency: An empirical analysis in the South African manufacturing industry
Abstract
This paper investigates the relationship between second-hand machinery and equipment and technical efficiency in South Africa’s industrial firms. In general terms, one can state that the obtained resultsallow the conclusion of the fact that the use of machinery and second hand equipment in emergent economies is not only explained in terms of economic efficiency, as argued by Sen (1962), but also interms of technical efficiency. In our opinion, the level of real wages plays a decisive role over technical efficiency, both when examined in an isolated manner, as when related to the depth of capital of companies, and with the stock of machinery and second hand equipment used.
Key words: Stochastic frontier analysis (SFA), technical efficiency, manufacturing sector, second hand machinery.
