Technical efficiency of manufacturing firms in Villavicencio (Colombia)

The manufacturing sector is central for the economic development of a region given the technological progress it incorporates and the multiplier effect it has on other economic sector. This article aims to analyze the behavior of the technical efficiency of firms located in Villavicencio (Meta). In...

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Detalles Bibliográficos
Autores principales: Avendeaño Mancera, Jennifer Katherine, Cardona Candamil, Juan Andrés, Torres Rodríguez, Gabriel Alfredo, Ospina Infante, Rafael, Díaz Castro, Javier
Formato: Revistas
Lenguaje:Español
Publicado: Universidad de Cartagena 2022
Acceso en línea:https://revistas.unicartagena.edu.co/index.php/panoramaeconomico/article/view/4215
Descripción
Sumario:The manufacturing sector is central for the economic development of a region given the technological progress it incorporates and the multiplier effect it has on other economic sector. This article aims to analyze the behavior of the technical efficiency of firms located in Villavicencio (Meta). In addition, the empirical approach allows comparing with other 9 capital cities in Colombia. This is a quantitative, non-experimental, longitudinal study and trend design that uses the non-parametric method of Data Envelopment Analysis (DEA) to estimate technical efficiencies using the Annual Manufacturing Survey carried out by the National Statistical Office (DANE). We identify three inputs: permanent staff salaries, intermediate consumption, and fixed assets; and as output the value of sales. Technical efficiency of Villavicencio businesses has grown in recent years, as result of adjustments in fixed assets and staff salaries, and their annual growth rate has been higher when compared to other cities. We conclude that the achievement of greater efficiency is linked to the flexibility of companies to adjust their factors to production levels.