Technical Efficiency of Micro and Community Enterprises: Evidence from Dok-Kham-Tai District, Phayao, Thailand

Abstract

This study is to find what are key factors contributing efficiency of the Dok-Kham-Tai community enterprises. In order to meet this objective question, first Data Environment Technique (DEA) is applied to calculate the community enterprise efficiency scores. Then, the calculated efficiency scores will be linked and explained by financial and non-financial factors. According to this study, the first stage of DEA calculation shows the efficiencies of Dok-Kham-Tai enterprises are relatively low which is around 0.01 to 0.30. In the second stage, it finds that financial and non-financial factors are both equally important in stimulating Dok-Kham-Tai enterprise efficiency. Regarding to the financial factors, even though capital per worker is significant and positively relate to the enterprise efficiency, the output per worker turns out to be significant but negative. This negative sign implies, to raise the efficiency, the Dok-Kham-Tai community enterprises need to expand their production possibly in order to get benefit of economy of scale. On the other hand, non-financial factors which are political relationship and gender, female leader, are found to significantly contribute the enterprises´┐Ż technical efficiency.



Author Information
Piyapong Sangkaew, University of Phayao, Thailand

Paper Information
Conference: ACBPP2014
Stream: Urban

This paper is part of the ACBPP2014 Conference Proceedings (View)
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