Efficiency of Listed Manufacturing Firms in Jordan: A Stochastic Frontier Analysis

Abstract

This study examines the technical efficiency of the manufacturing firms listed in Amman Stock Exchange market (ASE) in Jordan over the period 2009-2017. The stochastic frontier approach was used to measure the efficiency. The results show that the firms have an overall efficiency of 74 %, means that the firms wasted about 26% of their inputs. Among the firms, (RMCC) has the highest averageefficiency of (90% ) witha standard deviation of (0.06) over the period of the study, and (IPCH) has the lowest average efficiency of (26% )with a standard deviation of ( 0.38) for the same period. Keywords: Efficiency, manufacturing firms, stochastic frontier analysis, panel dataJEL Classifications: D24, C51DOI: https://doi.org/10.32479/ijefi.10489