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Size, efficiency, and profitability

Empirical evidence from Mexican Assembly Plants

Bibliographic Data

ID12144307
AuthorsJoan B Anderson (University of San Diego, corresponding author)
Year1988
Volume3
Issue2
Pages1-16
Publication date1988-09-01
Open AccessNo
TypeARTICLE
VenueJournal of Borderlands Studies (JOURNAL)
Journal identifiersISSN: 0886-5655 • E-ISSN: 2159-1229
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/08865655.1988.9695357
OpenAlexW2049126182
LanguageEN
Citations received3
References cited18

This study is an empirical investigation of the relationship between the size of a plant and its efficiency and profitability. The question of optimum size of plant has important implications for both governmental development planning policy and managerial planning. In many developing countries policies toward business with respect to credit, subsidies and tax treatment often are differentiated by size of firm based on the conventional wisdom that larger firms are more efficient and more profitable. If the advantage of large firms is due to economies of scale, then the relationship between the size of plant and efficiency should be positive. There is, however, mounting empirical evidence that for many industries the importance of economies of scale has been overestimated

Business · Empirical evidence · Industrial organization · Profitability index · Efficiency Analysis Using DEA · Fiscal Policy and Economic Growth · Global trade and economics · Finance

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  • On Estimating Stochastic Frontier Production Functions and Average Efficiency

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  • Firm size and technical efficiency

    Open Access•John Page, John M Page•Journal of Development Economics•1984

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Citations per year0.11
Citation span1998 - 2008 (11)
Highly citedNo

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